XRP Tests $1 Support as Long Liquidations and Negative Flows Dominate

Woofun AI reports that XRP is currently testing the critical $1 support level, a zone that had previously held as the asset's lowest point of the year since the June low near $1.01. This week's price action briefly pushed beneath that historical floor, raising immediate concerns about the stability of the yearly low. The market is now at a juncture where a sustained breach of this threshold could validate a deeper decline, while a successful defense would keep the broader recovery narrative intact. The distinction between a temporary wick and a structural breakdown remains the central question for traders monitoring the asset's near-term trajectory.

Structurally, the chart indicates that XRP has broken below the rising trend line that provided support during the June-July recovery phase. The asset remains under the 50-day SMA, which is currently positioned around $1.081 and has begun to turn lower, signaling weakening momentum. The next visible support level sits around $0.93, a target that becomes relevant if the current floor fails to hold. A move back above the 50-day SMA would be required to demonstrate that buyers are regaining ground lost during the recent selloff, but such a reversal has not yet materialized. The current technical setup leaves bulls with substantial ground to recover before the chart can be considered repaired.

Momentum indicators reflect the ongoing pressure, with the daily RSI down to 33.9. While this level is approaching oversold territory, it has not yet crossed below the 30 threshold that typically signals extreme selling exhaustion. This positioning leaves room for sellers to press further before the indicator registers a definitive oversold condition. The RSI's proximity to 30 suggests that while selling pressure is intense, the market has not yet reached the point where a technical bounce is guaranteed. Consequently, the indicator does not yet provide a strong counter-signal to the prevailing bearish trend.

The order-flow data reveals a persistent imbalance in the spot market, where active selling remains stronger than buying interest. Data shows negative XRP spot flow across every window in the snapshot, with inflows totaling $66.65 million against $76.17 million in outflows over 24 hours. This results in a net flow of -$9.52 million for the day. The deficit widens over longer periods, reaching -$19.96 million over three days, -$32.26 million over five days, and -$47.19 million over seven days. This consistent outflow indicates that aggressive spot demand has not picked up despite the asset testing major support levels.

Woofun AI data shows the imbalance is considerably larger in the derivatives market, where XRP futures recorded net flow of -$78.63 million over 24 hours. This negative flow widened to -$98.94 million over three days, -$163.03 million over five days, and -$261.97 million over seven days. The magnitude of these figures suggests that institutional or large-scale traders are actively reducing exposure or initiating short positions. The disparity between spot and futures flows highlights the intensity of the selling pressure in leveraged markets, which often amplifies price movements during periods of high volatility.

Liquidation data further underscores the dominance of sellers, particularly among leveraged longs. At 03:00 on August 11, when XRP was near $1.0039, CoinGlass recorded about $2.11 million in long liquidations against only $56,850 in shorts. This skew confirms that a long flush was underway as XRP pressed into support, with forced exits adding to the selloff rather than the move being driven solely by new short entries. If $1 gives way while this deleveraging continues, the resulting forced selling could accelerate the breakdown, creating a cascading effect that pushes prices lower.

Despite the long-liquidation spike, XRP's open-interest-weighted funding rate was still positive at 0.0045% in the same snapshot. This indicates that some long bias remained in the perpetual market even after leveraged buyers had already taken losses. Funding rates can change quickly during sharp moves, so a single reading should not be overinterpreted.

However, if the rate remains positive during another move lower, it suggests that vulnerable long exposure is still present and could unwind further. A cooler funding rate while buyers hold the current support would offer a healthier sign that excess leverage has been cleared.

XRP is now sitting at the point where the decline either stabilizes or starts damaging the year's broader price setup. A confirmed break below $1 would remove the support that stopped the June selloff, leaving sellers in control of the market. This risk is reinforced by negative spot flows, heavier futures selling, and a liquidation skew that has already punished leveraged longs. For now, the burden is on buyers to defend the current level; holding $1 keeps the recovery case alive, while losing it would likely trigger further downside toward $0.93.