XRP Grapples with $1 Threshold as Institutional Demand Weakens
XRP is trading at around $1 as it struggles to maintain its price amid weakening institutional demand and regulatory uncertainty. The cryptocurrency has been testing the $1 level multiple times in August, with buyers recovering the price after dips below this threshold.
The slowdown in XRP ETF inflows has contributed to the token's weakness, falling by about 93% according to recent reports. This reduction in institutional buying pressure makes it harder for XRP to build a sustained recovery.
However, large holders, or 'whales,' have continued to accumulate tokens, adding over 72 million XRP in 24 hours as the price traded around $1. This accumulation suggests that some significant investors view the current weakness as an opportunity to add to their positions.
The delayed CLARITY Act vote has pushed a major potential catalyst into September, leaving traders cautious about the token's prospects. If lawmakers make progress on the legislation, XRP could receive a fresh boost from improved regulatory expectations.