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Point of Focus
- XRP is trading near $1.03 after falling more than 5% over the previous week.
- The critical $1 support could determine whether XRP stabilizes or extends its correction.
- Long liquidations have accelerated selling pressure and reduced derivatives open interest.
XRP is attempting to stabilize near $1.03 on Monday after losing more than 5% over the previous week, but the modest rebound has yet to reverse its bearish short-term structure.
The token remains close to the psychologically important $1 level as derivatives liquidations and weaker institutional demand amplify selling pressure.
XRP remains below key moving averages
XRP continues to trade beneath all three major exponential moving averages. The 50-day EMA sits near $1.10, followed by the 100-day EMA at $1.18 and the 200-day EMA around $1.37.
This configuration indicates that sellers remain in control across short, medium and longer-term time frames. It also creates a broad resistance zone that could limit recovery attempts.
Now it makes sense. My suspicions were correct. Every $XRP drop has been bottom call that fails to exist before heading lower. Eventually these analysts will be right 🥱 https://t.co/wMiP19BCSN pic.twitter.com/H0oyoB4Mkt
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) August 9, 2026
The Relative Strength Index (RSI) is hovering around 39. While this shows weakening momentum, XRP has not yet entered oversold territory, leaving room for further losses.
The Moving Average Convergence Divergence (MACD) indicator also remains negative, reinforcing the bearish outlook.
Long liquidations accelerate the decline
Derivatives positioning appears to have intensified XRP’s recent volatility. Falling prices triggered a cluster of long liquidations, forcing leveraged traders to close bullish positions and adding mechanical selling pressure.
Declining open interest alongside the correction suggests that speculative leverage is being removed from the market. This deleveraging could eventually produce a healthier foundation for a recovery, but it may cause sharper price swings in the near term.
2/5 The Tom DeMark Sequential has flashed a buy signal on XRP’s monthly chart, hinting at a possible macro shift from bearish to bullish momentum.
Over the past six years, this indicator has marked several major XRP reversals:
• April 2020 buy signal: 1,074% rally
• August… pic.twitter.com/XKhGapPolP— Ali Charts (@alicharts) August 9, 2026
The stronger US dollar, rising Treasury yields and more defensive investor positioning have provided additional headwinds.
Meanwhile, softer capital flows into XRP-linked investment products suggest that institutional demand is not yet strong enough to absorb the pressure.
The $1 support level becomes critical
The immediate focus is the horizontal and psychological support at $1. Buyers are likely to defend this area because a decisive break could trigger further stop-losses and liquidations.
A sustained close below $1 would confirm another bearish breakdown and could expose XRP to a deeper correction. Conversely, holding the level would keep open the possibility of consolidation and a relief rebound.
For momentum to improve, XRP must first reclaim its 50-day EMA near $1.10. A break above that level could shift attention toward the 100-day EMA at $1.18 and horizontal resistance around $1.30.
The 200-day EMA at $1.37 represents a more substantial barrier. Until XRP recovers at least the $1.10-$1.18 range, rallies may continue to attract sellers. For now, the battle around $1 is likely to determine whether the latest decline stabilizes or develops into a more severe breakdown.
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