XRP fell to the key support level of $1.000 today, driven by waning demand for spot Ripple ETFs and a contracting RLUSD stablecoin market capitalization. The token now faces the risk of further declines if it breaks below this threshold. XRP has also been the subject of significant regulatory scrutiny since December 2020, when the SEC sued Ripple alleging that XRP sales constituted unregistered securities offerings. A July 2023 federal court ruling found that programmatic XRP sales on exchanges did not qualify as investment contracts, providing partial regulatory clarity for the token.

Technical Analysis

The Ripple token has been in a prolonged sell-off for nearly two years, retreating from its record high of $3.65 to the current level near $1. This pullback may persist in the near term, as the coin has descended to a crucial support level coinciding with its June low.

XRP has formed a descending triangle pattern, characterized by a horizontal support line and a descending trendline—a formation that frequently precedes a bearish breakout. The price has also fallen below both the 50-day Exponential Moving Average (EMA) and the Supertrend indicator, reinforcing the bearish outlook.

The Average Directional Index (ADX) has risen to 15.88, its highest reading since June 10. A rising ADX signals that the prevailing trend is gaining strength. Given these indicators, continued downside is the most probable near-term scenario, with the next psychological support target at $0.80.

Spot XRP ETF Inflows Fade

Demand for XRP ETFs has visibly weakened over recent months. SoSoValue data shows that these funds recorded zero inflows for two consecutive days. They have attracted just $1.01 million in inflows this month, down sharply from last month's $29 million. The inflow trajectory has been declining since peaking at $131 million in May 2026.

In total, spot XRP ETFs now hold $950 million in assets under management (AUM) following cumulative net inflows of $1.51 billion. The gap between cumulative inflows and current AUM is largely attributable to XRP's ongoing price decline.

XRP is also lagging behind other digital assets in ETF demand. Spot Solana ETFs added $8.8 million on Monday, their strongest single-day performance in months. Spot Bitcoin and Ethereum ETFs have attracted $708 million and $230 million, respectively, so far this month.

Ripple USD Growth Has Stalled

A key use case for the XRP Ledger is its role in the stablecoin sector through Ripple USD (RLUSD), a dollar-backed stablecoin issued by Ripple for cross-border payments and on-chain settlement. When RLUSD usage increases, additional tokens are typically incinerated, reducing circulating supply. Recently, however, RLUSD growth has stalled. After its market capitalization climbed above $1.8 billion, it has declined over the past several days to approximately $1.5 billion.

This contraction mirrors a broader stablecoin pullback. USDC's market valuation has fallen from over $80 billion to $72 billion, while PayPal's PYUSD has dropped from over $4 billion to $2.7 billion. RLUSD's daily volume stood at $117 million over the past 24 hours.

Additional data indicates that XRP's daily trading volume has fallen to $1.1 billion, down from last year's peak of over $10 billion. Daily futures open interest has also declined, dropping to $2.65 billion from a prior high exceeding $10.8 billion.