XRP Price Approaches $1 Support Level Amid Weak ETF Demand

XRP Struggles Close to Key Support Level

On August 6, 2026, XRP traded at approximately $1.05, marking the fourth consecutive day of declines and bringing the cryptocurrency perilously close to the psychological $1 support level. This ongoing drop is being fueled by a significant decrease in demand for U.S. spot XRP exchange-traded funds (ETFs), which recorded $3.58 million in net outflows during the previous trading session.

Technical Indicators Show Bearish Momentum

The daily Relative Strength Index (RSI) for XRP remained below 40, and the bearish Moving Average Convergence Divergence (MACD) readings indicate weakness in market momentum. If XRP fails to maintain its position above $1, it could potentially drop towards $0.88, although this target is currently speculative.

Resistance and Support Levels

Market analysis suggests that buyers must first reclaim $1.11 to initiate a potential reversal, while reclaiming $1.50 would indicate a stronger confirmation of a price recovery. Recent trading data reveals XRP’s 24-hour price range fluctuated between $1.04 and $1.07, reflecting a 1.1% decline during that period and a dramatic 64.3% drop over the past year.

ETF Demand Weakness and Market Impacts

The recent outflows from XRP ETFs highlight a notable slowdown in institutional demand, with earlier inflow trends coming to a halt. Notably, the XRP funds experienced a streak of nine weeks of inflows before stalling, and the muted institutional interest suggests challenges in reversing the broader downtrend.

Ripple’s Regulatory Progress

Despite these developments, Ripple has made significant headway in regulatory compliance, notably receiving full authorization under the European Union’s Markets in Crypto-Assets framework. This authorization, obtained on July 6, allows Ripple to offer regulated crypto services across all 30 European Economic Area countries. However, this progress does not automatically translate into increased demand for XRP or an uptick in its price.

What Lies Ahead for XRP?

The immediate focus for XRP is between the key levels of $1 and $1.11. Maintaining a position above $1 would preserve the current trading range, allowing further recovery attempts. Conversely, a dip below this support could bring attention to lower targets of $0.96 and $0.88, with deeper levels becoming relevant over time if selling pressure persists.

Activating further market caution, upcoming changes in ETF operations, including a potential new FTSE benchmark agreement slated for August 24, could impact XRP’s demand trajectory. However, there is no guarantee this will result in direct fund flows or influence XRP’s price direction.