XRP Price Nears $1 Breakdown Despite Strong ETF Inflows

Key Takeaways

XRP is testing the critical $1.01–$1.04 support zone, with a decisive breakdown potentially exposing the token to $0.89.
XRP ETFs attracted $27.29 million in July, extending their inflow streak to four months, but the token remains down roughly 40% in 2026.
Buyers must reclaim $1.093 to improve short-term momentum, while a broader trend reversal requires a move above the $1.24-$1.29 resistance zone.

XRP is approaching a decisive test near $1 as persistent selling pressure overshadows ETF inflows, declining exchange balances and continued growth across the XRP Ledger ecosystem.

The token traded around $1.07 on Monday after repeatedly failing to sustain recovery attempts. Its technical structure remains bearish across both the daily and four-hour charts, with lower highs showing that sellers are using rebounds to reduce exposure.

The $1.01-$1.04 demand zone has prevented a deeper decline during recent weeks. However, repeated tests can weaken support by gradually absorbing outstanding buy orders.

A confirmed breakdown could therefore expose XRP to $0.89, while buyers must reclaim at least $1.09 before a meaningful recovery can begin.

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ETF Inflows Fail to Reverse XRP’s 40% Decline

Institutional demand has not disappeared. XRP-backed exchange-traded funds attracted $27.29 million in July, extending their net inflow streak to four months.

Inflows reached $81.59 million in April, $131.94 million in May and $59.46 million in June before slowing last month. Cumulative inflows reportedly stand near $1.5 billion, while US-listed XRP funds collectively hold almost 1 billion tokens.

XRP/USD daily chart. | Credit: TradingView

Yet XRP remains approximately 40% below its price at the beginning of 2026. That disconnect suggests ETF purchases are not currently large enough to absorb selling elsewhere in the market.

Capital has also remained concentrated in larger cryptocurrencies. Bitcoin and Ethereum funds attracted approximately $172 million and $365 million, respectively, during July.

XRP’s $27.29 million inflow looks comparatively modest and represents a substantial slowdown from May.

Declining exchange balances, which remain near three-year lows, offer another potentially bullish signal. However, reduced exchange supply cannot support prices indefinitely when spot demand is weak, and existing holders continue selling into rallies.

Escrow Release Adds to a Difficult Supply Picture

Ripple’s scheduled August escrow release has added to cautious sentiment, although the event does not necessarily mean 1 billion XRP is entering the market.

Ripple can release up to 1 billion XRP at the beginning of each month, but usually returns around 700 million tokens to new escrow contracts. Consequently, approximately 200 million to 300 million XRP may become available for operational, liquidity or ecosystem purposes.

Ripple preemptively locked 700 million $XRP back into escrow in two tranches of 200 million and 500 million on August 1st. Only after that did the system release the main 1 billion XRP in three consecutive portions of 500 million, 300 million and 200 million tokens. This maneuver… pic.twitter.com/Dvb9Zlu4V4

— XRPcryptowolf (@XRPcryptowolf) August 2, 2026

Because this mechanism is predictable, it is unlikely to be the only reason for XRP’s weakness. Nevertheless, additional supply can still matter when demand is already struggling to overpower sellers.

Longer-term fundamentals remain constructive. Ripple’s RLUSD stablecoin has reportedly reached a market capitalization of between $1.5 billion and $1.7 billion, while partnerships involving tokenized real-world assets could generate additional XRP Ledger activity.

Markets are also watching the CLARITY Act and forthcoming US economic data.

Weaker employment figures could increase expectations for the Federal Reserve easing and improve demand for risk assets. Regulatory progress could similarly benefit XRP, although neither catalyst has yet changed the prevailing downtrend.

XRP Breakdown Could Open the Door to $0.89

XRP continues to trade beneath a descending daily trendline and its major moving averages, preserving the broader bearish structure.

On the four-hour chart, the token is below the 50-period moving average at $1.079 and the 100-period average near $1.101. The Relative Strength Index (RSI) stands around 47, indicating mildly bearish momentum without reaching oversold territory.

Immediate support sits at $1.066, followed by $1.044, $1.027 and $1.007. A decisive close beneath the $1.01-$1.04 zone would place the psychologically important $1 threshold at risk and could accelerate the decline toward $0.89.

The first sign of improvement would be a recovery above $1.079. Buyers would then need a confirmed close beyond $1.093 to target $1.116 and $1.135.

A larger trend reversal remains unlikely unless XRP breaks its descending trendline and reclaims the $1.24-$1.29 resistance zone. Until then, ETF inflows and ecosystem growth may provide support, but sellers remain firmly in control.

XRP Price Nears $1 Breakdown as Sellers Overpower Bullish News

ETF Inflows Fail to Reverse XRP’s 40% Decline

Escrow Release Adds to a Difficult Supply Picture

XRP Breakdown Could Open the Door to $0.89

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