XRP traded near $1.37 on August 31 after experiencing a 2% decline over 24 hours, retreating from approximately $1.48 during the previous week. According to crypto.news data, the token has now broken below the critical $1.35-$1.38 support zone where approximately 3.2 billion XRP tokens had previously changed hands. The 4-hour chart shows XRP is trading near a 4-hour Supertrend support at $1.341, with the Awesome Oscillator registering a negative reading of -0.0364 and its histogram staying below zero, indicating short-term bearish momentum. The combination leaves XRP at a decision point, with holding $1.34-$1.35 preserving the higher trading range created by the August rally, while a confirmed 4-hour close below this level could weaken the remaining bullish structure.
Despite the recent price volatility, XRP ETFs recorded their strongest weekly inflows of 2026, with $110.49 million in net inflows for the week ending August 28, as per SoSoValue data. The funds held approximately $1.44 billion in net assets after the inflows, with cumulative net inflows reaching a record $1.66 billion. This contrasts sharply with derivatives traders who took a more defensive position, as aggregate XRP futures open interest had climbed to approximately $2.73 billion earlier in August, its highest level since October, before declining together with the price retreat from the $1.48-$1.50 resistance zone. The reset reduced leverage accumulated during the rally but failed to produce enough spot buying to return XRP above $1.40 before month-end. Recent SEC filings show five major US spot XRP ETFs are collectively underwater by $746.1 million on a cost basis of roughly $1.7 billion, yet investors kept buying with net capital flow positive by $320.8 million even as fair value sank 44.1% below cost.
The Senate is scheduled to hold a cloture vote on the CLARITY Act at 2:15 p.m. on September 15, which could have a significant impact on XRP's near-term price performance. However, prediction platforms show that the probability of the bill being passed in 2026 has dropped sharply to approximately 14%, down from 82% in February. Democratic lawmakers insist that stricter provisions regulating cryptocurrency transactions by political officials be included in the bill as a condition for their support. CFTC Chairman Michael Selig has publicly stated that the agency has sufficient authority to regulate the cryptocurrency market under the current legal framework, while the U.S. Securities and Exchange Commission released its "Crypto Asset Regulatory Framework" on August 18, containing several definitional elements consistent with the CLARITY Act. Crypto analyst XrpArab noted on August 31 that CFTC Chairman Michael Selig appeared optimistic about the outcome of the September 15 Senate hearing, highlighting several unresolved complexities and discussing potential consequences if the cloture motion fails before the October election recess.
The one-week CoinGlass liquidation heatmap reveals the largest nearby liquidity concentrations around $1.35 and $1.38, with XRP testing both areas during the August 31 decline. Losing the $1.35 level would place the next visible liquidity pockets near $1.33 and $1.30. Liquidity remains stacked above the market, with the first meaningful overhead cluster appearing near $1.40-$1.42, followed by a broader concentration between $1.44-$1.45. Larger liquidation bands extend toward $1.48-$1.50, which could accelerate a rebound if XRP moves higher and forces leveraged short positions to close. The daily chart shows Chaikin Money Flow at 0.09, keeping the indicator above zero and suggesting net buying pressure over its 20-day measurement period. A 1 billion XRP escrow release is scheduled for September 1, with price action near $1.43 this cycle versus roughly $1 during the prior unlock, representing a materially stronger setup.
Price action has cooled from the late-August peak near $1.70, with XRP now sitting in the mid-$1.30s after shedding roughly 8% on the week. The $1.34-$1.35 zone represents the critical line in the sand, and a break below opens the door toward $1.25-$1.27, near the 61.8% Fibonacci retracement. Bloomberg ETF analyst James Seyffart called the demand "surprisingly resilient" in an Aug. 31 post, putting cumulative net inflows across the asset class at $1.8 billion. A reclaim of the $1.41 pivot would flip the structure back bullish, with $1.47 and eventually $2 psychological targets back in play. However, holding through a $746.1 million paper loss takes conviction, as the market cap is simply too large for asymmetric returns. The market is testing institutional patience, with the September 1 escrow release adding another layer of complexity to the current consolidation between $1.34 and $1.41.
