XRP Eyes Triangle Breakout Toward $1.35 as Altcoin Rally Builds Steam on Clarity Act Optimism

XRP is flashing a classic technical breakout pattern as a broad-based altcoin rally sweeps through digital asset markets, with traders eyeing a potential 20% surge should key resistance crumble in the coming sessions.

By Carlos Martinez | July 21, 2026

The third-largest cryptocurrency by market capitalization climbed approximately 4.6% over 24 hours to trade near $1.13, a critical short-term inflection point that analysts say could determine the token’s trajectory for weeks to come. The move comes as the broader crypto market rallied on reports that U.S. President Donald Trump agreed to a key ethics provision for the long-awaited Clarity Act, potentially clearing the path for the crypto market structure bill to advance through the Senate.

The Setup: Symmetrical Triangle Compresses

On the hourly chart, XRP has been compressing inside a symmetrical triangle, a textbook continuation pattern where price makes lower highs and higher lows simultaneously. This coiling action typically precedes a sharp directional move, and according to analyst Ali Martinez, the breakout door opens above $1.13.

A sustained push through that level could trigger a roughly 20% rally toward $1.35, Martinez noted on social media, citing the TD Sequential indicator flashing a monthly buy signal. The TD Sequential is a widely followed momentum tool that identifies exhaustion in trends and potential reversal points, and its monthly buy signal adds a layer of conviction to the short-term bullish thesis.

However, the picture is not uniformly bright. While the hourly structure paints an optimistic short-term scenario, the daily chart tells a more cautious story. XRP remains trapped inside a descending channel that has capped every major rally attempt for months, with the 100-day and 200-day moving averages hovering above the current price and sloping downward.

On-Chain Evidence: Volume and Derivatives Align

The price action is backed by tangible market participation. CoinGecko data shows 24-hour trading volume of approximately 1.27 billion, with XRP’s market capitalization near 70.85 billion. The token’s 24-hour range stretched from $1.08 to $1.14, and volume increased noticeably during the breakout attempt, confirming genuine buying interest rather than a low-liquidity spike.

Derivatives markets are telling a parallel story. Open interest in XRP futures has ticked higher alongside broad-based inflows into major altcoins including ADA, XLM, and LINK, according to CoinDesk data. While ether and bitcoin have seen more aggressive open interest buildups, the steady accumulation in XRP futures points to traders positioning for continued upside rather than hedging against a reversal.

The 24-hour order-flow-adjusted cumulative volume delta, which tracks whether market orders are predominantly buy or sell driven, shows XRP maintaining a positive skew, indicating bulls are currently leading the price action through aggressive buying rather than passive limit orders.

The Core Conflict: Short-Term Strength vs. Larger Downtrend

The tension in XRP’s chart comes down to a battle between timeframes. The hourly chart says a breakout is forming. The daily chart says XRP is still in a downtrend.

The $1.24 to $1.28 zone represents the most significant overhead resistance. It aligns with the upper boundary of the multi-month descending channel and coincides with major moving averages that have consistently rejected price advances. Until XRP clears this zone, every rally remains a short-term breakout attempt within a larger bearish structure.

On the downside, the $1.02 to $1.06 area has emerged as the strongest demand zone, where buyers have repeatedly stepped in over recent weeks to absorb selling pressure. Losing this support would expose the $0.88 to $0.92 region, invalidating the bullish setup and extending the downward drift.

This creates an asymmetric risk picture for traders. The distance from the current price near $1.13 to the triangle target of $1.35 represents roughly 20% of upside potential. The distance from the support floor to the lower boundary of the demand zone represents about 15% of downside risk. For momentum traders, that risk-reward profile remains favorable as long as the $1.06 floor holds.

Market Implications: Clarity Act Tailwinds and Altcoin Rotation

XRP’s breakout attempt is not happening in isolation. The broader altcoin market is catching bids on growing speculation that the Clarity Act could finally move through the Senate. Crypto journalist Eleanor Terrett reported that Trump agreed to a crucial ethics provision for the bill, and while no official text has been released, Polymarket bettors pushed passage odds to 43%, up from recent lows.

The CoinDesk DeFi Select Index surged 9% on the news, outpacing even bitcoin’s 3.5% gain. Ether rallied 3% over 24 hours and 8% over seven sessions. Solana added 2% to reach $77.88, BNB held above $556.18, and Chainlink posted gains alongside broad-based inflows into altcoin futures.

For XRP specifically, the regulatory clarity narrative carries unique weight. The token’s multi-year legal battle with the U.S. Securities and Exchange Commission created persistent overhang, and legislative clarity on what constitutes a digital commodity versus a security could fundamentally reshape XRP’s institutional accessibility.

The chip stock reversal in Asia provided an additional tailwind. MSCI’s Asia Pacific equities gauge climbed 2%, with Samsung and Taiwan Semiconductor leading gains. The semiconductor recovery reversed the risk-off wave that had pressured crypto lower the previous week, creating a constructive backdrop for risk assets including altcoins.

The Fed Factor: July Meeting Looms

The Federal Reserve’s July 28-29 meeting remains the wildcard. Markets currently assign roughly 15% odds to a July rate increase, though a September move remains in play. Jeff Mei, chief operating officer at BTSE, described current bitcoin and ether prices as low but fair given macro uncertainties, with traders positioned around the Fed’s forward guidance.

Spot-market volume across crypto stayed subdued even as prices rose, the signature of a market lifted by returning risk appetite rather than fresh institutional conviction. Until volume confirms the move, the breakout remains provisional.

The Verdict

XRP sits at a crossroads that encapsulates the broader altcoin market’s dilemma. The short-term technicals are constructive: a symmetrical triangle breakout is forming, volume is rising, derivatives positioning is building, and a monthly momentum indicator is flashing a buy signal. A confirmed break above $1.13 opens the path to $1.35.

But the larger structure remains stubbornly bearish. XRP is still trading inside a descending channel, below its major moving averages, and needs to clear $1.24-$1.28 before anyone can credibly call a trend reversal. The Clarity Act optimism provides fundamental fuel, but Senate negotiations are notoriously unpredictable.

For traders with shorter time horizons, the setup offers a defined-risk opportunity with a clear invalidation level. For investors with longer horizons, the prudent approach is waiting for the daily chart to confirm what the hourly chart is hinting at. XRP at $1.13 is a story worth watching, but the chapter is not finished yet.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves significant risk. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Prices mentioned reflect values as of July 21, 2026, and are subject to change.