XRP has fallen as low as $1.01 during the current bear-market pullback, renewing discussion over whether the token could briefly trade below $1 before the cycle’s downturn is complete.

A Pattern Compared With the Previous Cycle

One analyst has pointed to XRP’s 2022 bear market as a possible reference point. In that cycle, XRP reached a low near $0.28 in June 2022 and then retested that support level roughly half a dozen times through January 2023. The sequence included a final move to $0.32 before the market turned.

According to the analyst, the current structure resembles that earlier setup, although it is unfolding at a higher price range in this cycle.

Exchange Shutdowns Continue

Bitmart has become the second crypto exchange to shut down in less than a week, following an earlier announcement from BitMEX. After the shutdown news emerged, Bitmart’s native token, BMX, dropped by more than 60%.

A former major Bitcoin mining pool has also filed for bankruptcy, reportedly listing only $1 million in assets against $500 million in liabilities. In recent weeks, several digital asset treasury companies and at least one crypto hedge fund have also wound down operations.

Analysts following the sector have described the recent wave of failures as a sign that excess leverage and weaker market participants are being forced out. Some analysts say similar conditions have historically appeared before major market bottoms in previous cycles.

Institutions Press for Regulatory Clarity

Support for the CLARITY Act has increased among major financial institutions ahead of the Senate’s August 7 recess deadline. Charles Schwab and Fidelity have both urged the Senate to pass the CLARITY Act.

They have been joined by the Fraternal Order of Police and Goldman Sachs CEO David Solomon, who has publicly called for the bill’s passage. The bill is being watched by crypto and traditional finance firms because it is intended to clarify how U.S. digital asset markets are regulated, including the roles of federal market regulators.

XRP Ledger Upgrades Move Through Amendment Process

Separately from price action, several technical upgrades for the XRP Ledger are advancing through its amendment process. The XRP Ledger’s batched fix update has already cleared its 80% voting requirement and is expected to go live within days.

On the XRP Ledger, amendments are used to activate protocol-level changes after validator approval, making the process a key governance mechanism for changes that affect network functionality rather than a simple software release by one company.

Additional upgrades under discussion include batch transactions, which would allow as many as eight transactions to be grouped into a single atomic action; zero-knowledge proof privacy features designed to enable confidential transfers; sponsored fees and reserves, which would allow platforms to pay the XRP wallet creation cost for new users; permission delegation, which would permit specific account permissions without transferring full custody; and dynamic multi-purpose tokens, which can include updatable fields after launch.

Two other proposed features are receiving particular attention. One is a Single Asset Vault that would allow users to pool XRP, RLUSD, or other tokens. The other is a companion lending protocol built on top of that vault, enabling fixed-term, uncollateralized loans intended for institutional use.

Why the XRP Ledger’s DEX Is Being Highlighted

As centralized exchanges continue to close, some analysts are pointing to the XRP Ledger’s built-in decentralized exchange as a safeguard for token holders.

Because the DEX is part of the XRP Ledger protocol rather than a separate centralized trading venue, it operates independently of any single trading platform. That structure is why supporters argue users can continue trading and earning yield on XRP even if individual exchanges they previously used are no longer available.