The round $1 threshold remains a strong point of defense for XRP. Since the massive crypto rally during the “Trump pump” era in November 2024, XRP has set a record by maintaining its daily session closing price above the $1 level for 635 consecutive days. At the peak of euphoria when Trump was re-elected, the asset even briefly touched an all-time high of around $3.65.
However, that long defensive streak was nearly broken twice in August. During trading on August 11 and August 14, XRP’s price briefly slipped into the cents zone. XRP touched a local low of $0.9862, though buyers ultimately stepped back in to support the market before the daily session close.
Bridge Exploit and the Stock Market Contrast
The shaky defense was triggered by a security exploit within its ecosystem. A hacking incident targeted the protocol bridge connecting TX Chain and the XRP Ledger. The exploit drained approximately $200,000 in liquidity. Although the figure is relatively small for the global crypto market, the incident shook short-term investor confidence.
Crypto market sentiment this week did not help much either. Bitcoin’s price dropped by more than 3% and is now stuck below the $64,000 threshold, while Ethereum is still struggling to maintain the $1,900 level. Interestingly, capital flows seem to be shifting direction. The S&P 500 and Nasdaq actually moved close to their record highs during the same week, primarily driven by the buying euphoria of artificial intelligence (AI) stocks.
Warning Signals from Technical Indicators
In addition to external sentiment, XRP’s price chart has started sounding alarms for traders. A death cross pattern has officially formed on the daily chart after the 50-day Exponential Moving Average (EMA) line crossed below the 200-day EMA line. This crossover is a classic confirmation that sellers are now dominating the short-term trend.
Data from the weekly chart reinforces this selling pressure. XRP’s Average Directional Index (ADX) indicator on the weekly scale is currently at 33.7. According to technical analysis rules, an ADX reading above 25 indicates a strong trend. Given the downward direction of the price, this confirms that the current weakening trend is indeed strong. An additional warning comes from the gap between the 50-week and 200-week EMAs, which has continued to narrow for months, opening the potential for a weekly death cross.
Why Regulatory Help Has Not Arrived Yet
Just when the market needs a new catalyst to stem the decline, Washington is shutting its doors. The United States Senate entered a five-week recess without voting on the Clarity Act. This delay pushes the realistic timeline for passing the regulation to September 15.
In the executive branch, the US Securities and Exchange Commission (SEC) also canceled its voting schedule regarding their new crypto rules. The absence of regulatory support means XRP’s 635-day defense above $1 now relies solely on its own market technical strength. Reported by Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
