XRP Price Falls Below $1.05 as Broader Crypto Selloff Tests Key Support
XRP fell below the $1.05 support level on June 26, 2026, touching prices not seen since November 2024 as a sustained crypto market selloff deepened. The token was trading near $1.02 after losing roughly 7% over the past seven days, extending a decline that has now erased more than 70% of XRP’s value from its $3.65 all-time high set in July 2025.
The move below $1.05 is significant because the level had held as a floor through multiple pullbacks earlier this year. Its loss puts the psychological $1.00 level squarely in focus, with thinner trading volume below current prices suggesting that any further breakdown could accelerate.
What Is Driving XRP Lower
The selloff is not specific to XRP. The entire cryptocurrency market has come under sustained pressure since late May, driven by a combination of sticky inflation data, a hawkish Federal Reserve that has shown no urgency to cut interest rates from the current 3.5% to 3.75% range, and escalating geopolitical uncertainty tied to U.S.-Iran tensions that have pushed energy prices higher.
Bitcoin fell below $59,000 on June 26 after spending weeks grinding lower from its late-May levels near $77,000. The broader crypto market capitalization has contracted by approximately $2 trillion from its 2025 peak of $4.2 trillion, according to CoinMarketCap data. The Crypto Fear & Greed Index sits at 17, deep in “Extreme Fear” territory, and has averaged just 19 over the past 30 days.
A significant catalyst for the June selloff was Strategy’s decision to sell Bitcoin for the first time in years. While the sale involved only 32 BTC, worth roughly $2.5 million, it shattered the firm’s long-standing “never sell” narrative and rattled confidence across the market. That event coincided with a record streak of spot Bitcoin ETF outflows exceeding $3 billion over ten consecutive trading days, according to Coinglass data.
XRP has been hit harder than Bitcoin during this downturn. The token fell roughly 7.2% over the past week compared to a 4% decline in the broader crypto market, according to CoinGecko data. This underperformance is consistent with XRP’s historical pattern of amplifying Bitcoin’s moves, with roughly 1.8 times the volatility of the leading cryptocurrency.
ETF Inflows Have Not Stopped
One of the more unusual dynamics in the current selloff is the persistence of institutional buying through spot XRP exchange-traded funds. Seven U.S.-listed spot XRP ETFs have accumulated roughly $1.44 billion in cumulative net inflows since launching in November 2025, with products from Bitwise, Franklin Templeton, Grayscale, and others continuing to attract capital even as the price drops. The funds recorded $5.31 million on June 22 and $2.55 million on June 18, according to crypto.news reporting on Bitwise XRP ETF data. May 2026 set a monthly record at $131.94 million in net subscriptions.
Combined net assets sit near $1 billion, with approximately 938.7 million XRP tokens locked in fund holdings as of June 25. But daily ETF buying of $5 million to $25 million represents a small fraction of XRP’s $1.5 billion+ daily trading volume, meaning the institutional bid has been enough to defend floors during calm periods but insufficient to absorb selling during broad drawdowns.
The Overhead Supply Problem
A less discussed factor weighing on XRP is the concentration of underwater holders creating persistent resistance on every rally attempt. On-chain analytics from Glassnode show roughly 1.16 billion XRP tokens held at a cost basis between $1.44 and $1.46. Approximately 60% of XRP’s circulating supply is currently held at prices above the spot rate, according to data cited by Memeburn’s earlier analysis.
This means that every time XRP attempts a recovery, it runs into holders who have been waiting months to exit at breakeven. The pattern played out repeatedly during April and May, when a 20-day consecutive ETF inflow streak defended the $1.40 level but never managed to push through resistance above $1.45.
The dynamic helps explain why bullish catalysts keep producing muted price responses. Whale wallets holding more than 1 million XRP now control 74.1% of the total supply after accumulating 1.53 billion tokens over six months, according to Santiment data. Exchange reserves have dropped to seven-year lows near 1.7 billion XRP. These are typically bullish supply signals, but they have not been enough to overcome the selling pressure from holders looking to exit at higher levels.
The RLUSD Question
A structural question hanging over XRP’s long-term price is whether Ripple’s own stablecoin is absorbing demand that would otherwise flow through XRP.
Ripple’s dollar-pegged stablecoin RLUSD has grown to approximately $785 million in circulation across around 45,500 holders, with on-chain supply increasing nearly 30% in a single month, according to Dune Analytics data cited by CCN. The stablecoin entered Japan through SBI Group’s VC Trade platform after receiving approval from Japan’s Financial Services Agency, and it recently listed on Gate.io with multiple trading pairs including XRP/RLUSD.
XRP was originally designed as a “bridge asset” for Ripple’s On-Demand Liquidity product, converting dollars to XRP and back during cross-border transfers. RLUSD now offers institutions an alternative path through the same infrastructure, with the added benefit of price stability that banks prefer. As The Motley Fool’s Dominic Basulto noted, Ripple has pivoted toward stablecoin infrastructure, spending $200 million to acquire stablecoin payments firm RAIL and prominently featuring stablecoin integration on its website.
This does not mean RLUSD is entirely negative for XRP. Network activity on the XRP Ledger has increased alongside RLUSD growth, and all transactions on the ledger still require small XRP-denominated fees. But the fees are minimal relative to XRP’s total supply, and the more RLUSD absorbs institutional payment flows, the weaker the argument for XRP as a necessary intermediary becomes.
Regulatory Catalysts Remain Pending
The CLARITY Act, widely considered the single most important regulatory catalyst for XRP in 2026, cleared the Senate Banking Committee on May 14 with a bipartisan 15-9 vote and was placed on the Senate Legislative Calendar in early June. A full Senate floor vote has not been scheduled, though the White House has reportedly targeted July 4 as a deadline for the broader crypto legislation package.
If signed into law, the bill would permanently classify XRP as a digital commodity under federal statute, moving beyond the SEC and CFTC’s joint administrative classification from March 2026. Prediction markets on Polymarket place the odds of passage in 2026 at approximately 59%. Standard Chartered analyst Geoffrey Kendrick has projected XRP could reach $8.00 by year-end if the bill passes and ETF inflows scale significantly, while a stalled bill could remove the institutional expectations currently supporting the price.
What Levels Are Traders Watching
With XRP now trading below $1.05, the technical picture has shifted notably from where it stood even a few days ago.
On the downside, the $1.00 psychological level is the immediate focus. Below that, Coinpedia’s analysis identifies a potential “volume gap” between $0.88 and $0.75, a zone with relatively thin historical trading activity where price could move quickly due to weaker demand. On-chain MVRV data shows XRP reached similar “stress zones” near $0.96 during past bear markets, according to Memeburn’s warning signs analysis.
For bulls, the first meaningful recovery target sits at the $1.12 area, which has flipped from support to resistance over the past two weeks. A daily close above that level would need to come on strong volume to signal anything beyond a temporary bounce. Beyond that, the $1.28 to $1.30 zone represents the next major hurdle, and reclaiming it would require a shift in broader market sentiment that currently seems unlikely.
XRP’s weekly RSI has dropped to levels not seen since the 2022 bear market bottom, a reading that has historically preceded reversals. But oversold conditions alone do not guarantee a bounce, especially when the macro backdrop remains hostile. Stronger rebound volume than selloff volume would be the clearest signal that a durable bottom is forming, and the market has not delivered that yet.
What Comes Next
The near-term trajectory for XRP price depends more on macro forces than on any token-specific catalyst. Bitcoin’s ability to hold the $58,000 to $60,000 range will likely set the direction for the entire altcoin market, and the next U.S. Consumer Price Index release will influence whether the Federal Reserve’s hawkish stance softens or hardens.
For XRP specifically, the variables worth tracking are the CLARITY Act’s progress toward a Senate floor vote, whether ETF inflow momentum survives a sustained period below $1.00 (if the level breaks), and whether RLUSD’s growth begins producing measurable XRP transaction fee revenue that changes the fundamental narrative. Until at least one of these resolves in XRP’s favor, the token’s strongest structural supports remain the continued ETF buying and the historically oversold conditions that have preceded recoveries in past cycles.
FAQs
Why is XRP price dropping in June 2026?
XRP is falling alongside a broader crypto market selloff driven by sticky inflation, hawkish Federal Reserve policy, and sustained Bitcoin ETF outflows exceeding $3 billion. Bitcoin dropped below $59,000, dragging altcoins including XRP lower, with XRP underperforming due to its higher volatility relative to Bitcoin.
Will XRP price drop below $1 in 2026?
XRP is currently trading near $1.02, putting the $1.00 psychological support under direct pressure. Technical analysts have identified thin volume zones below $1.00, meaning a breakdown could push prices toward $0.88 before finding stronger support. Whether $1.00 holds depends largely on broader market stabilization and Bitcoin’s ability to defend the $58,000 to $60,000 range.
Are XRP ETFs still getting inflows?
Yes. Despite XRP’s price decline, seven U.S. spot XRP ETFs have maintained roughly $1.44 billion in cumulative net inflows since their November 2025 launch. May 2026 set a monthly record at $131.94 million. However, daily inflow volumes of $5 million to $25 million represent a small fraction of XRP’s $1.5 billion daily trading volume and have been insufficient to offset broader selling pressure.
What is the CLARITY Act and how does it affect XRP?
The CLARITY Act is U.S. legislation that would permanently classify XRP as a digital commodity under federal law. It cleared the Senate Banking Committee in May 2026 with a 15-9 vote and sits on the Senate Legislative Calendar. A full floor vote has not been scheduled. Passage would provide statutory regulatory certainty beyond the current administrative classification, potentially unlocking larger institutional allocations.
