XRP Drops 5% to $1.05 as CLARITY Act Shelved and $1 Support Tested

XRP fell about 5% toward $1.05 on July 28, placing the psychological $1 support level back in focus. The move followed a XRP bearish chart breakdown, forced long liquidations, risk reduction ahead of the Federal Reserve decision, and uncertainty after the U.S. Senate deprioritized the CLARITY Act before its August recess.

Oversold indicators may support a temporary bounce, but traders still need confirmation that the current area is a durable floor rather than a pause before another decline.

Key Takeaways

• XRP must reclaim $1.054 and then $1.075 to weaken the immediate bearish setup.
• A daily close below $1.043 to $1.05 would increase the risk of testing $1.02 and the psychological $1 level.
• The CLARITY Act delay and modest XRP ETF flows add uncertainty, but neither factor alone determines the next price move.

XRP Price Today: Why XRP Fell Toward $1.05?

(image source: Bitrue.com)

The XRP price chart above was taken on July 29, 2026. During the July 28 selloff, XRP reached about $1.0486 on Binance after repeatedly failing near $1.11. Selling accelerated after the token lost $1.08, with liquidations and stop-loss orders adding pressure as the price moved through crowded leverage zones.

The wider market backdrop was defensive ahead of the Federal Reserve’s July 28 to 29 meeting. XRP, like many altcoins, remains sensitive to global liquidity, interest-rate expectations, and broader crypto sentiment.

Liquidations Accelerated the Decline

(image source: coinglass.com)

The liquidation heatmap shows XRP moving through liquidity near $1.095 and $1.08 before falling rapidly toward $1.06 and $1.05. Another concentration around $1.043 to $1.05 may slow the decline temporarily.

Larger liquidity pools remain above the price near $1.062, $1.075, and $1.097. These areas may attract price during a rebound, but they could also become resistance if traders reduce exposure there.

Liquidation heatmaps estimate where leveraged positions may be forced to close, so they should not be treated as guaranteed price targets.

XRP Drops Below $1.05 Support Level

The break below $1.054 was important because that area acted as the neckline of a bearish double-top formation. Losing it exposed late-June support around $1.01 to $1.03 and the major psychological level at $1.

XRP’s four-hour relative strength index fell near 26, an oversold reading. Oversold conditions can support a relief bounce, but they do not confirm that the market has reached its final bottom. 

Ripple XRP Double Top Pattern Breakdown

(image source: cryptonews.com)

The Ripple XRP double top pattern breakdown formed after two rounded peaks developed near $1.17. Buyers failed to hold above $1.15, while repeated rejection around $1.11 weakened the structure before the neckline failed.

The daily chart also placed XRP below the lower Bollinger Band near $1.054, with Chaikin Money Flow around -0.12. Recovering the Bollinger midpoint near $1.098 would improve the short-term structure, while a move above roughly $1.14 would provide stronger evidence of a recovery.

XRP ETF Flows July 2026 and CLARITY Act Uncertainty

XRP ETF flows in July 2026 remained positive but modest near month-end. One widely reported figure showed approximately $592,000 in net inflows on July 27, suggesting that regulated investment demand continued but was not strong enough to prevent the spot-market decline.

ETF totals can vary by provider, reporting time, and fund classification. Some trackers displayed different daily figures, so investors should verify the latest numbers directly before using ETF flows as a trading signal.

The CLARITY Act was not definitively cancelled. Senate leaders prioritized nominations and other legislation, making passage before the August recess less likely, although part of the floor process could still begin.

Read Also: XRP ETFs See Strong Inflows in 2026: What It Means for Retail Traders

XRP Price Prediction August 2026 CLARITY Act Scenarios

No reliable model can guarantee XRP’s August 2026 price, so confirmation levels are more useful than a single dramatic target.

1. Bullish recovery: Reclaiming $1.054, $1.075, and $1.098 could open a retest of $1.11 and then the $1.14 to $1.17 resistance area.
2. Range scenario: Holding above $1 while remaining below $1.098 could keep XRP moving sideways as markets assess monetary policy, ETF flows, and Senate developments.
3. Bearish continuation: A daily close below $1.043 would pressure $1.02 and $1, while support below $1 needs to be checked again using updated market data.

These scenarios describe possible market paths, not guaranteed outcomes. Volume, broader crypto performance, and whether broken support levels are reclaimed should be considered alongside the price itself.

Is XRP Safe for Beginners?

XRP is the native asset of the XRP Ledger, a public blockchain that uses validator consensus. Ripple is a technology company associated with the ecosystem, but buying XRP does not provide ownership in Ripple or a guaranteed claim on its business revenue.

Network security does not remove investment risk. XRP holders still face price volatility, exchange custody risk, phishing, regulatory uncertainty, and leveraged losses.

Beginners should verify the trading pair, fees, withdrawal network, wallet address, account protections, and local availability before transacting. Beginners considering exposure can follow this guide on how to buy XRP safely in 2026 while checking fees, volatility, and personal risk limits.

Conclusion

XRP’s fall toward $1.05 confirmed a short-term bearish breakdown and shifted attention to $1.043, $1.02, and $1. Oversold momentum may produce a rebound, but XRP must reclaim $1.054 and then $1.098 before the chart looks materially healthier.

The CLARITY Act delay and modest ETF demand add uncertainty without deciding the outcome by themselves. Traders considering XRP should use updated data, avoid excessive leverage, and define their risk before entering around this closely watched support area.

Track XRP markets through Bitrue Exchange and review updated market analysis on the Bitrue Blog before making a trading decision.

FAQ

Why did XRP drop to $1.05?

XRP fell after breaking support near $1.054, while leveraged liquidations, broader risk reduction, and uncertainty surrounding U.S. crypto legislation intensified selling.

Will XRP fall below $1?

A move below $1 is possible if XRP closes under the $1.043 to $1.05 zone and fails to hold $1.02, but the available indicators do not guarantee that outcome.

What is the main XRP support level now?

Immediate support is around $1.043 to $1.05, followed by approximately $1.02 and the psychological $1 level.

How does the CLARITY Act delay affect XRP?

The delay may weaken near-term regulatory optimism, but XRP’s price also depends on monetary policy, ETF demand, market liquidity, and technical momentum.

Is XRP a good investment for August 2026?

XRP may suit investors who understand high volatility and regulatory risk, but positive returns cannot be guaranteed, making position sizing and independent verification essential.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.