XRP (CRYPTO: XRP) fell to $1 for the first time since November 2024 after a security breach drained roughly 200,000 XRP from the Coreum bridge on the XRP Ledger. The incident highlights vulnerabilities in cross-chain infrastructure, where a software logic flaw allowed an attacker to exploit the bridge’s relay system without stealing private keys. This event has intensified selling pressure, pushing the asset to levels not seen in nearly two years.

The Coreum Bridge Exploit

Blockchain analytics site XRPL.to reported that the Coreum bridge held approximately 200,410 XRP on August 9 before the balance dropped to 493.5 XRP within 97 minutes. The attacker did not send any real XRP to the bridge. Instead, they moved the bridge’s own token between two of their own wallets while attaching a fake deposit label.

The bridge’s software detected this transaction in its history and incorrectly interpreted it as a genuine incoming deposit. Consequently, the system credited the attacker with XRP they had never actually sent. With this fraudulent balance established, the attacker withdrew real XRP through standard channels, and the bridge approved every payment request.

The stolen funds were forwarded to older staging wallets within hours, a pattern consistent with money laundering techniques. The bridge halted operations the following afternoon. XRPL.to concluded that the vulnerability lay in the relay software’s logic, which explains why all 21 independent relayers were simultaneously deceived by the same trick.

Market Reaction and Technical Analysis

Analyst Ali Martinez flagged on X that XRP is now down 71.7% from its July 2025 all-time high of $3.66, reaching extremely oversold levels. Martinez noted that the Tom DeMark Sequential indicator flashed a monthly buy signal, a technical event that previously preceded a 1,074% rally after an April 2020 signal and a 973% rally after an August 2022 signal.

Martinez stated that new buy signals are emerging at current levels, describing it as the point where market dynamics start getting interesting. Despite the bearish sentiment driven by the hack, technical indicators suggest potential for a reversal if support holds.

Key Price Levels

XRP touched $0.9905 intraday on Tuesday, briefly breaking below the psychological $1 barrier before buyers intervened to push the price back to a close at $1.01. This marks the second test of the $1 level since June 26, but the recent move was more significant as the price pierced below it before recovering.

A volume surge of $2.39 billion in futures occurred exactly when the price broke below $1, indicating a genuine market flush. Traders are now monitoring key levels to determine the next direction.

What the Numbers Show

The correlation between the hack and the immediate price drop to multi-year lows suggests that market participants are reacting sharply to infrastructure risks. The fact that the exploit relied on a logic flaw rather than key theft implies that similar bridges may be vulnerable to identical attacks, potentially creating broader systemic risk for assets relying on these intermediaries. The high volume at the $1 break confirms strong sell-side conviction, but the rapid recovery above $1 indicates persistent buyer interest at these discounted valuations.

XRP posted its lowest weekly close in nearly two years on Sunday, breaking through the $1.04 support level that had remained intact every week since November 2024. The breach of this key technical floor has shifted market focus to the $1 psychological barrier, which now serves as the primary line of defense for the asset. A clean weekly loss of the $1 level opens the path for a decline toward $0.75, identified as the next meaningful support on the weekly chart. Conversely, holding above $1 could enable a relief bounce toward $1.06 resistance.

The price action coincides with regulatory headwinds affecting the broader crypto narrative. The Clarity Act missed its Senate vote before the recent recess, delaying one of XRP’s key potential catalysts. Senate Majority Leader John Thune filed cloture on the motion to proceed, with a vote rescheduled for September 15 when the Senate returns. However, Grayscale noted that the odds of the Clarity Act’s passage have fallen significantly, warning that the US risks losing crypto investment and developers to other jurisdictions.

Market sentiment reflects this uncertainty. Polymarket currently assigns a 65% probability to XRP falling below $1.00 before the end of the month. As of Monday, XRP traded at $1.027, bouncing at the apex of a broken triangle pattern but lacking volume conviction behind the move. Technical indicators remain bearish, with the Parabolic SAR sitting at $1.11 and all four Exponential Moving Averages (EMAs) stacked overhead as resistance.

Despite the bearish technical setup, some analysts point to emerging bullish signals. Ali Martinez outlined a five-part bull case based on two key data points: a monthly Tom DeMark Sequential buy signal and significant whale accumulation. Santiment data cited by Martinez shows that whale wallets added more than 380 million XRP over the past week, suggesting conviction near current prices. Martinez identifies $1.06 as the critical resistance level to flip, noting that roughly 3 billion XRP changed hands around this price on-chain.

What the Numbers Show

The divergence between short-term technical weakness and long-term accumulation patterns presents a complex trading environment. While the immediate chart structure is bearish—with overhead EMAs and a broken support shelf—the influx of more than 380 million XRP into whale wallets suggests institutional or large-holder interest is building at these lower levels. This accumulation mirrors the setup preceding a 1,074% rally following an April 2020 DeMark signal, though such historical parallels carry no guarantee of future performance. The immediate battle remains at $1; a failure here validates the path to $0.75, while a hold allows for a test of the $1.06 resistance zone.