XRP Price Tanks on Corporate Selloffs, Clarity Act Delay
Ripple (XRP) is down 3.04% to $1.03 on Thursday, widening the gap between the token market rate and the price target set by crypto traders.
The token is underperforming a slightly negative broader market, primarily driven by a reversal in institutional ETF demand and delayed regulatory catalysts.
Trading data indicated that spot XRP ETFs recorded a $3.58 million net outflow on August 5, snapping a positive streak and signalling waning near-term institutional demand.
The primary driver is a shift in institutional flows. U.S. spot XRP ETFs saw a $3.58 million net outflow on August 5, their first negative session since July 8.
This removed a key source of buying pressure. Concurrently, the U.S. Senate delayed the CLARITY Act—which would classify XRP as a commodity—until after its recess, removing a near-term regulatory catalyst.
Traders said the 2026 bull thesis for XRP heavily relied on sustained ETF inflows and regulatory clarity; both faced setbacks this week.
Technically, XRP broke cleanly below the $1.05 support floor, which now flips to resistance. The token trades below all major moving averages, confirming a bearish “death cross” structure.
Technical selling and a lack of altcoin momentum compounded the negative price move. A hold or break of the $1.00 level, and a reversal in the altcoin season index.
The immediate trigger is whether ETF outflows continue. The key level to watch is the $1.00 psychological support, which has held all year.
A decisive break below $1.00 on high volume could trigger a swift move toward the measured target of $0.90–$0.92 from the recent descending triangle. For any recovery, XRP must reclaim and hold above $1.05 to invalidate the immediate breakdown.
The trend is bearish below $1.05, with critical support at $1.00. The next U.S. ETF flow report and price action around $1.00. The convergence of ETF outflows, delayed regulation, and technical breakdown has created strong selling pressure.
While positive ecosystem developments like Ripple’s MiCA license in Europe provide long-term utility, they are currently overshadowed by short-term demand concerns. Polkadot Price Rises 5.2% to $0.8648 on Bullish Shift
