XRP has experienced a significant decline of almost 16% from its recent peak, with the crucial support level now at $1.30, acting as a barrier between a normal correction and a potential drop towards $1. The upcoming price movement hinges on two factors aligning perfectly.
This article may contain affiliate links, and Flywheel Publishing may earn compensation for actions taken through these links.
In recent days, XRP (CRYPTO:XRP) has shown substantial fluctuations, reaching a high of $1.66 before retreating to the $1.44-$1.50 range, and subsequently dropping to $1.39 due to a broader market downturn. Nonetheless, XRP still boasts a 31% increase in August.
With less than a day left in the month, the struggle between buyers and sellers intensifies, and XRP is now at a critical $1.30 support level.
Possible Drop for XRP if $1.30 Support Fails
The current decline towards the $1.30 support point in XRP indicates that it is already trading close to its recent volatility limits. A dip below this support could suggest strong selling momentum and raise the likelihood of a more substantial downturn.
The immediate support level to monitor below $1.30 is $1.29, which serves as an additional critical support point. Buyers might step in around this level, potentially slowing the descent; however, failure to maintain this point would lead attention to the more robust support at $1.25.
The $1.25 zone aligns with a 38.2% Fibonacci retracement based on XRP’s four-week and 13-week low of $0.9873, making it a pivotal battleground for buyers and sellers. Should XRP fall below $1.25, the next target could be $1.22, reflecting a 12.2% reduction from current values.
If the price dips below $1.22, XRP could approach $1.20, marking its 14-3 day raw stochastic at 30%, suggesting it nears the bottom of its recent trading range without entering oversold territory. Consequently, $1.20 might attract new buying interest, assisting XRP in retaining some recent gains.
However, should sellers drive XRP below $1.20, the next significant point could be $1.17. This would push XRP below its 18-day moving average, further indicating a decline in short-term momentum. Continued selling pressure under these thresholds would heighten the risk of a sharper downturn towards the $1.07 to $1 range. The $1 mark is particularly pivotal as it symbolizes a major psychological support level, crucial for investor decision-making.
Could the CLARITY Act Assist XRP in Maintaining $1.30?
The CLARITY Act seeks to create a clearer framework for cryptocurrency regulation, categorizing XRP as a digital commodity under the oversight of the CFTC. This act represents a significant potential driver for XRP, aiming to alleviate the regulatory ambiguity that has deterred large institutional investors.
Initial expectations for a full Senate vote on the bill in Q2 have dimmed, as the Chamber concluded its August recess without addressing the legislation. Galaxy Research and the Solana Policy Institute suggest the probability of passage before the midterms is only about 10%, while traders on Polymarket estimate the chances of the bill’s approval in 2026 to be around 13%.
Nevertheless, the Senate is slated to conduct a cloture vote on September 15, a procedural necessity that requires 60 votes for the bill to advance for discussion. A successful vote could enhance market sentiment regarding XRP and potentially drive the token toward the $1.40-$1.50 range, giving buyers a stronger position to protect the essential $1.30 support level.
While a successful cloture vote would provide XRP with a much-needed regulatory lift, it does not assure that the bill will become law. It must still undergo debate and amendments before any reconciliation between the House and Senate. Conversely, if the cloture vote fails, this setback might impede the bill’s progress and remove one of XRP’s significant potential catalysts, possibly intensifying selling pressure around the $1.30 support level.
XRP’s Upcoming Two Weeks Could Shape Its Direction
Should XRP break below the $1.30 support, it could experience additional selling pressure. However, this does not necessarily mean an immediate drop to $1 or below, as there are various support levels between these two points that might slow or halt the decline.
Ultimately, XRP’s ability to maintain above $1.30 will rely on its trading performance over the next fortnight and whether ETF demand can sustain buying momentum by withdrawing tokens from the open market. In August, XRP ETFs recorded inflows of $153.54 million, marking their strongest monthly performance since November 2025, when nearly $500 million flowed into XRP ETFs.
If XRP successfully holds its ground over the coming two weeks and the cloture vote on September 15 turns out favorable, buyers could gain a solid foothold in the market, possibly sparking another rally attempt beyond $1.50.
For questions or corrections, please contact [email protected] for further inquiries.