Will XRP (Ripple) Hold $1.05? The Last Line of Defense Shaken by Institutional Selling

▲ XRP/AI generated image ©

XRP (Ripple) stood alone in a slight market rally, its decline attributed to a confluence of factors: a strong dollar, regulatory uncertainty, and institutional selling totaling $180.78 million. XRP fell 1.46% over 24 hours to $1.06, with the critical support level of $1.05 emerging as the last line of defense against further declines.

According to cryptocurrency market aggregator CoinMarketCap on August 6 (local time), the strong dollar and rising US Treasury yields weakened risk appetite, putting selling pressure on XRP. Despite the easing of legal risks between Ripple and the US Securities and Exchange Commission (SEC), remaining regulatory uncertainty was analyzed to have limited institutional investor sentiment. The market is paying attention to upcoming US inflation data and additional documents expected in the remedies phase of the lawsuit between the two parties.

Institutional capital outflows also exacerbated the decline. The Grayscale XRP Trust ETF (GXRP) sold approximately $180.78 million worth of XRP in the first half of 2026 due to investor redemptions and price drops. Although some spot products recently saw capital inflows, large-scale redemptions by major funds overwhelmed retail investor buying, resulting in actual net selling pressure.

The derivatives market also lost vitality. XRP's open interest has fallen to a six-month low, indicating weakened conviction in both leverage and direction. With price volatility also decreasing, investors are adopting a wait-and-see approach until new macroeconomic conditions and regulatory news emerge.

The short-term trend is expected to be determined in the $1.05-$1.06 support zone. If it holds $1.05, it could attempt a rebound towards $1.10, but if the daily closing price accompanied by increased trading volume falls below $1.05, there's a higher chance of retesting the psychological support level of $1. According to analysis, unless the US cryptocurrency market structure bill, the Clarity Act, which stalled in the US Senate, progresses, XRP is likely to remain in a downward-pressured trading range.

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