XRP Price Faces Risk of Falling Below $1 Amidst Bearish Market Sentiment

Ripple's XRP token has been struggling to regain momentum amidst a bearish market sentiment. The token has lost about 70% of its value since the beginning of the year, with prices capping below $1.10 in recent weeks due to sustained retail and institutional investor selloffs.

The current price of XRP is $1.03, having stayed above the breaking point without significant movement for weeks. Analysts are warning that if the support level breaks, the token could fall below $1.

Ripple's efforts to enhance its footprint in cross-border payments and tokenisation have not had a positive impact on the token's price, with many analysts maintaining a bearish outlook.

The recent postponement of the US Clarity Act, which is expected to classify XRP as a digital commodity under Federal law, has also weighed heavily on investor sentiment, pushing the token price lower to $1.01 last week.

However, Senate Majority Leader John Thune has filed a cloture motion to advance the Digital Asset Market Clarity Act, scheduling a critical procedural vote for September 15. This move establishes a formal timeline for legislative debate once lawmakers return from recess.