XRP is attempting to hold the important $1.35 support area after falling roughly 7% over the past week, even as U.S. spot XRP exchange-traded funds recorded their strongest weekly inflows of 2026.
XRP traded near $1.36 on Aug. 31 after retreating from around $1.48. While short-term momentum has weakened and leveraged traders have reduced their positions, institutional demand through spot XRP ETFs remains strong.
U.S. spot XRP ETFs attracted approximately $110.49 million in net inflows during the week ending Aug. 28. However, that demand has yet to translate into a sustained recovery above the key $1.40 resistance level.
XRP Price Drops 7% After August Rally
XRP was trading around $1.36 on Aug. 31 after declining from approximately $1.48 over the previous seven days.
The move left XRP down about 7% for the week.
However, the decline followed a much stronger recovery earlier in August.
XRP had fallen as low as approximately $0.98 before staging a rally of more than 30% during the month. The token briefly reached $1.70 on Aug. 22 before sellers rejected the move.
Since then, XRP has formed a series of lower highs below approximately $1.55, $1.50, and $1.45.
This pattern shows that buyers have struggled to regain the momentum seen during the earlier August rally.
XRP Holds Above Key $1.34 Support
XRP’s four-hour chart shows the token approaching an important support area created during the initial breakout.
The Supertrend indicator remained bullish near $1.341, placing technical support slightly below XRP’s current price.
This makes the $1.34 to $1.35 region particularly important for the short-term outlook.
As long as XRP remains above this area, the higher trading range established during August remains intact.
A confirmed four-hour close below $1.34, however, could weaken the remaining bullish structure and increase the risk of a deeper correction.
Short-Term XRP Momentum Remains Weak
Although XRP continues to hold above Supertrend support, momentum indicators show that sellers have not completely disappeared.
The four-hour Awesome Oscillator stood at approximately -0.0364.
Its histogram also remained below zero, indicating continued bearish short-term momentum.
The combination creates an important decision point for XRP.
Defending $1.34–$1.35 could allow buyers to establish a base for another recovery attempt.
Losing that area could shift attention toward lower support levels around $1.30 and $1.28.
XRP ETF Inflows Reach $110.49 Million
One of the strongest bullish signals for XRP is coming from institutional investment products.
U.S. spot XRP ETFs attracted approximately $110.49 million in net inflows during the week ending Aug. 28, according to SoSoValue data.
It marked their strongest weekly inflow performance of 2026.
Following the latest inflows, the funds held approximately $1.44 billion in net assets.
Cumulative net inflows reached roughly $1.66 billion.
The figures show that investor demand for regulated XRP exposure remains strong despite the token’s recent market decline.
This creates an interesting contrast between institutional ETF flows and XRP’s short-term price action.
ETF Demand Has Yet to Push XRP Above $1.40
Strong ETF inflows have not yet been enough to reverse XRP’s recent decline.
The token remained below $1.40 at the end of August, while derivatives markets showed signs of traders reducing leverage.
XRP futures open interest had previously climbed to approximately $2.73 billion earlier in August, reaching its highest level since October.
That increase suggested traders were positioning for a larger move.
However, both XRP’s price and futures open interest later declined as the cryptocurrency fell from its $1.48–$1.50 resistance zone.
When price and open interest decline simultaneously, it can indicate that traders are closing existing leveraged positions rather than aggressively establishing new short positions.
The reset may help remove some of the excess leverage accumulated during the earlier rally.
XRP Liquidation Map Highlights $1.35 and $1.38
CoinGlass liquidation data shows several major concentrations of leveraged positions near XRP’s current price.
The one-week liquidation heatmap places significant liquidity around $1.35 and $1.38.
XRP tested both levels during its Aug. 31 decline and was trading between them when the market data was captured.
The liquidity concentration around $1.35 makes this level particularly important.
If sellers push XRP below the weekly low, additional liquidation pressure could accelerate the move.
Below $1.35, the next visible liquidity areas appear around $1.33 and $1.30.
Short Liquidations Could Help XRP Recover
There are also large liquidation concentrations above XRP’s current market price.
The first major overhead zone appears around $1.40 to $1.42.
A broader concentration of leveraged positions sits between approximately $1.44 and $1.45.
Even larger liquidation clusters extend toward $1.48–$1.50.
If XRP rebounds into these areas, leveraged short positions may be forced to close.
That could add buying pressure and potentially accelerate a recovery.
However, these same areas can also act as resistance as traders use them to exit existing positions.
Daily XRP Capital Flows Remain Positive
While short-term momentum looks weak, XRP’s daily chart provides a somewhat more constructive signal.
The Chaikin Money Flow indicator stood around 0.09.
Because CMF remained above zero, it suggests that XRP continued experiencing net buying pressure over the indicator’s 20-day measurement period.
This means capital has not completely left the market despite XRP’s roughly 7% weekly decline.
The positive reading could support a recovery if buyers successfully defend the current support range.
However, XRP still needs to overcome the nearby $1.40 resistance level before the short-term technical outlook improves significantly.
XRP Must Reclaim $1.40
The daily chart places XRP close to its Murrey Math pivot around $1.40.
A convincing daily recovery above this level could provide the first meaningful indication that buyers are regaining control.
If XRP successfully reclaims $1.40, the next major resistance zone would appear around $1.48 to $1.50.
A breakout beyond that range could then put approximately $1.60 back into focus.
Eventually, bulls would need to challenge the August high near $1.70 to confirm a much broader continuation of the rally.
For now, however, $1.40 remains the first major upside test.
$1.28 Could Become XRP’s Main Downside Target
The downside setup becomes more significant if XRP fails to hold its current support.
Chart analyst ChartNerd noted that XRP had failed to reclaim its 50-week exponential moving average for a second consecutive week.
That moving average was positioned near $1.53.
The rejection strengthens the broader resistance area between approximately $1.48 and $1.53.
Meanwhile, XRP’s 20-week EMA was positioned closer to $1.27.
That makes the $1.27–$1.28 region an important longer-term support area if the current decline continues.
The first downside test remains the four-hour Supertrend near $1.341.
A decisive break below that level could push XRP toward $1.30 before opening the possibility of a deeper decline toward $1.27–$1.28.
XRP Bulls Need to Break the Lower-High Structure
XRP has struggled to establish a sustainable recovery since reaching $1.70 earlier in August.
The series of lower highs below $1.55, $1.50, and $1.45 shows that sellers remain active during rebounds.
A move above approximately $1.48–$1.53 would therefore be especially important.
Breaking that zone could invalidate the current lower-high structure and allow XRP to target approximately $1.60.
Beyond $1.60, traders could begin watching the August wick near $1.70 again.
Until then, XRP remains caught between improving institutional demand and weaker short-term technical momentum.
Ripple Escrow Release Adds Another Market Factor
Ripple’s scheduled monthly escrow release provides another factor for XRP traders to monitor.
The system is scheduled to unlock 1 billion XRP on Sept. 1.
However, this does not mean that all 1 billion tokens will immediately enter the open market.
Ripple has historically returned a significant portion of its scheduled monthly releases back into escrow.
As a result, traders should distinguish between tokens being technically unlocked and tokens actually entering circulation or being sold.
Still, large scheduled releases can attract additional market attention, particularly when XRP is already trading near an important support level.
CLARITY Act Could Affect XRP Sentiment
U.S. crypto regulation also remains a potential catalyst.
The Senate is expected to hold a procedural vote on the CLARITY Act on Sept. 15.
The vote is expected to test whether supporters can secure the 60 votes necessary to advance the legislation.
This would not represent final passage of the bill, and no signed law is scheduled for Sept. 15.
However, developments surrounding the proposal could influence sentiment toward cryptocurrencies trading in the United States.
The legislation aims to provide greater clarity around federal oversight of digital asset markets.
For XRP, which has historically been highly sensitive to U.S. regulatory developments, progress on market-structure legislation could attract particular attention.
XRP Price Faces a Crucial Support Test
For now, XRP’s immediate price structure remains more important than longer-term regulatory catalysts.
Buyers need to defend the $1.34–$1.35 region to preserve the higher trading range established during August.
A recovery above $1.40 would improve the short-term outlook and could open a move toward $1.45 and eventually $1.50.
Breaking above the broader $1.48–$1.53 resistance zone would provide stronger evidence that bulls are regaining control.
On the downside, losing $1.34 could expose approximately $1.30, followed by the more important $1.27–$1.28 support range.
Record weekly ETF inflows provide an encouraging institutional signal, but XRP still needs stronger spot-market demand to translate those flows into sustained upward price momentum.
For now, the battle between $1.34 support and $1.40 resistance is likely to determine XRP’s next significant move.
