XRP Dives to Technical Battleground as Grayscale’s GXRP Trust Selloff
XRP price dived to $1.05, a technical battleground for a decisive uptrend or downtrend in the token price, which has lost approximately 70% of its crypto market value in 2026.
Trading at this level, XRP is underperforming a slightly positive broader market, primarily driven by macro headwinds and persistent regulatory overhang.
Crypto analysts reported that a stronger U.S. dollar and rising Treasury yields are reducing demand for risk assets, compounded by ongoing Ripple-SEC uncertainty.
A firmer U.S. dollar and modestly higher Treasury yields on 5 August 2026 sapped demand for risk-sensitive assets like crypto.
This macro pressure is amplified for XRP by the lingering Ripple-SEC regulatory uncertainty, which continues to cap institutional appetite despite some positive ecosystem developments.
XRP is acting as a high-beta asset in a risk-off macro environment, with its unique regulatory risk acting as an additional drag.
The Grayscale XRP Trust (GXRP) reported selling $180.78 million worth of XRP in H1 2026 due to investor redemptions, creating a significant forced-supply overhang.
The immediate technical battleground is the $1.05–$1.06 support band, which aligns with the recent swing low. If this zone holds, a period of low-volatility consolidation is likely, targeting the 50% Fibonacci retracement level near $1.10.
A decisive break below $1.05, however, opens a path toward the psychological $1.00 level. The key trigger for a reversal is a volume-backed move above $1.08. The bearish momentum is intact, but the asset is at a critical decision point.
XRP’s decline is a combination of adverse macro conditions, coin-specific regulatory fears, and tangible selling from institutional products. The path of least resistance remains down until key resistance is reclaimed.
Grayscale’s GXRP Trust sold $180.78 million of $XRP in H1 2026, offloading 103.41 million tokens to redeem investor assets, the Form 10-Q shows.
Holdings fell from 122.23 million $XRP at end-2025 to 55.04 million by June 30; net assets dropped from $223.36 million to $57.41 million. Outstanding shares declined from 6.30 million to 2.84 million.
The trust recorded a $34.16 million realised loss on redemption sales, an unrealised loss of $17.47 million on its $XRP investment, and a $39,000 realised loss to offset expenses.
It also created 36.27 million $XRP worth $66.58 million, but outflows outweighed inflows. The filing ties outflows to authorised participants’ creations/redemptions and periodic $XRP withdrawals to cover sponsor fees. Grayscale CEO Peter Mintzberg sold part of his GXRP stake.
