XRP: Token Tests $1 as ETF Demand Fails to Prevent Fresh Selling

• XRP is testing $1: The token has fallen back toward the key psychological level after another week of weakness.
• Institutional demand remains a paradox: ETF holdings have grown, but price momentum has failed to respond.
• $1 is critical support: Losing it could accelerate the decline, while reclaiming $1.06 would improve the short-term setup.

XRP Fundamental Analysis

XRP is facing an important technical and fundamental test on August 13 as the token trades around the $1.00–$1.03 area.

Recent market data show XRP has fallen more than 5% over the past week and briefly moved below the psychologically important $1 level. At the same time, institutional XRP products continue holding a substantial amount of the token, creating an unusual divergence between adoption and price performance.

Spot XRP exchange-traded products reportedly hold approximately 930 million XRP, meaning a significant quantity of the asset is effectively locked into institutional investment vehicles.

Normally, that type of demand would be expected to reduce available supply and support prices.

Instead, XRP remains under pressure.

One explanation is that broader crypto liquidity remains weak and institutional buying has not been sufficient to overcome selling from other market participants.

Derivatives positioning is also becoming important. Open interest has increased while XRP has struggled to recover, creating the possibility of larger liquidation-driven moves if the token breaks through major support.

The XRP Ledger's continued development provides a longer-term fundamental argument. Tokenized assets and payment-related activity remain central to the network's growth story, while institutional adoption continues expanding.

But markets are currently focused on price rather than long-term adoption.

Regulatory developments also remain important. Greater clarity around digital assets could benefit XRP because institutional investors generally prefer assets operating within clearer regulatory frameworks.

For now, however, the immediate fundamental picture is mixed.

Institutional infrastructure is expanding, but the token has failed to translate that development into sustained upside momentum.

XRP Technical Analysis

XRP is trading around $1.00–$1.03, making $1.00 the most important technical level on the chart.

The token's recent decline has brought it back toward a major psychological support zone. A sustained daily close below $1.00 would be technically significant and could expose $0.95, followed by $0.90.

The first upside resistance is around $1.06.

Reclaiming $1.06 would suggest that buyers are beginning to absorb the recent selling pressure. Above that, $1.10–$1.12 becomes the next important resistance region.

A stronger recovery above $1.12 could open the way toward $1.20.

Momentum currently favors sellers because XRP has been unable to maintain higher highs and has repeatedly returned toward the $1 level.

However, the extreme importance of $1 means a sharp rebound is also possible. If buyers defend the level and XRP quickly reclaims $1.06, the move could become a short-term bear trap.

The technical picture is therefore bearish below $1.06 but potentially constructive above it.

The decisive level is $1.00: holding it could produce a recovery, while a confirmed breakdown would significantly increase downside risk.

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