XRP's recent drop below $1 — its first such breach in approximately two years — has undermined a more critical technical support level at $1.05, according to analyst Edo Farina. The decline comes amid a broader pullback in digital asset markets and underscores XRP's particular sensitivity to regulatory sentiment, given its history as the subject of a high-profile U.S. Securities and Exchange Commission enforcement action against Ripple that has shaped the token's trading profile since 2020.

Speaking in a video recorded from Cyprus, Farina argued that XRP's failure to swiftly reclaim the $1.05 zone leaves the market vulnerable to a potential decline toward $0.70–$0.72. Despite the bearish technical outlook, he characterized the pullback as a buying opportunity for long-term holders, suggesting that the difference between entry points at $0.70, $1, or higher levels may prove negligible over a roughly 24-month investment horizon.

$1.05, Not $1, Is the Critical Level

While the $1 mark carries undeniable psychological significance, Farina emphasized that $1.05 had been the level holding XRP's broader chart structure intact. With that support now broken, he identified the next major area of interest in the $0.70–$0.72 range.

On-chain analyst Ali Charts noted on X that XRP is down 71.7% from its July 2025 all-time high of $3.66, adding that after such a deep correction, the asset is trading at extremely oversold levels with new buy signals beginning to emerge.

$XRP is now down 71.7% from its July 2025 all-time high of $3.66. After such a deep correction, XRP is trading at extremely oversold levels, and new buy signals are beginning to emerge. This is where things start getting interesting. pic.twitter.com/KjWhL9iYS1 — Ali Charts (@alicharts) August 11, 2026

Farina disclosed that he has placed "massive buy orders" below $1, though he did not reveal specific order sizes or execution details. Rather than attempting to trade short-term price swings, he recommended dollar-cost averaging for investors who entered positions at $2 or $3 and remain concerned about ongoing volatility.

His guidance on leverage was unequivocal: avoid it. Farina argued that leveraged traders risk becoming exit liquidity during news-driven market moves, particularly when a widely anticipated event causes traders to position in the same direction — a risk especially acute for XRP, whose price has historically reacted sharply to legal and regulatory headlines.

Clarity Act unlikely to Determine XRP Adoption

The analyst also pushed back against expectations that the proposed Clarity Act would automatically trigger a major XRP rally. The bill, introduced in the U.S. Congress to establish a clearer regulatory framework distinguishing digital-asset securities from commodities, has been watched closely by market participants seeking resolution to the jurisdictional ambiguities that shaped the SEC's case against Ripple. While acknowledging the legislation's importance, Farina argued it is unlikely to determine XRP's adoption trajectory, warning that market makers could exploit the event by selling into an initial price spike.

"XRP does not need the Clarity Act fundamentally," Farina said, citing the XRP Ledger's permissionless design and asserting that Ripple's XRP holdings do not grant the company control over the network. He noted that network changes require approval from 80% of validators, though the video did not provide supporting documentation for broader claims regarding international institutional use.

Farina also claimed that Russia's central bank has conducted testing on the XRP Ledger and pointed to Ukraine's CBDC development work on Stellar as evidence that both XRP and XLM are positioned as cross-border liquidity assets. Both tokens have long competed in the cross-border payments space, targeting inefficiencies in legacy settlement infrastructure such as SWIFT, though adoption by sovereign institutions remains limited and uneven across jurisdictions.