XRP (CRYPTO: XRP) has probed the $1 level for eight consecutive sessions without a clean break, with sentiment hitting a three-month bearish extreme while on-chain activity surges.

What the Sentiment Data Is Showing

Santiment flagged on X that crowd commentary on XRP across X, Reddit, and Telegram has reached its most bearish reading in three months as prices stall near $1.

At the same time, XRP Ledger active addresses hit 49,929 in a single 24-hour span, the highest level in over two months, after activity had dropped near 2026 lows in early July.

Santiment described the divergence as the counter-signal bulls want to see. Fear is loud but participation is rising, which historically precedes either a sharp recovery or one final flush before a turn.

What Is the ETF Flow Data Showing?

Weekly net inflows into XRP spot ETFs have fallen roughly 85% over three weeks, dropping from $14.86 million on July 31 to just $2.25 million through August 14 according to SoSoValue.

Total net assets declined from $997.25 million to $933.01 million over the same period, meaning price depreciation is outpacing whatever new capital is trickling in.

Trading volume has held relatively steady in the $50 million to $67 million range, pointing to consistent activity despite the weaker inflows.

What the Chart Is Saying

XRP holds at $0.9993 Monday, testing $1 inside a descending channel from May that remains fully intact.

RSI at 36.53 approaches oversold territory, a level that historically precedes either a sharp relief rally or a final capitulation flush.

All four EMAs stack overhead as resistance with nothing meaningful below the $1 demand zone.

Eight consecutive days of attacking $1 without a clean breakdown suggests buyers are fighting hard to defend the level.

The longer the battle drags on, the more the floor weakens. A 20% move is building on whichever side wins.

XRP (CRYPTO: XRP) price dropped below the crucial support level of $1, reaching $0.995, its lowest level since November last year. The Ripple-linked token is now trading 72% below its all-time high, continuing a bear market that started in July last year.

The token has underperformed major cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) this year. This underperformance aligns with weakening demand indicators across both exchange-traded funds and the broader Ripple ecosystem.

ETF Inflows and Stablecoin Demand Decline

Data indicates that demand for XRP-focused ETFs has continued to wane this year. Funds tracking the token recorded over $3.27 million in inflows this month so far, a sharp decrease from the $27 million added last month. At their peak in May this year, these funds saw over $131 million in inflows.

Cumulative inflows for XRP ETFs stand at over $1.51 billion, with current net assets at $933 million. The largest funds are managed by companies including BitWise, Franklin, and Canary. The fading demand for these ETFs signals reduced interest from American institutional and retail investors as the crypto winter continues.

Simultaneously, demand for the Ripple USD stablecoin has weakened. Its market capitalization fell to $1.71 billion from a year-to-date high of $1.81 billion.

Ecosystem Activity Slows

Activity on the XRP Ledger has also slowed in recent months. Data from XRPScan shows drops in active accounts, transactions, and fees. According to DeFi Llama, the total value locked in the ecosystem dropped to $29 million from a record high of $115 million. Chain fees fell to just $48,120 in the first quarter, down from a peak of $1.4 million in the fourth quarter of 2024.

What the Numbers Show

The divergence between cumulative ETF inflows of over $1.51 billion and current net assets of $933 million highlights significant outflows or valuation adjustments within the fund structures. Additionally, the contraction in chain fees from $1.4 million to $48,120 mirrors the decline in total value locked, suggesting a broad-based reduction in network utility and transaction volume rather than isolated fee changes.

Technical Outlook

Technical analysis suggests potential for further downside. The daily chart shows XRP forming a descending triangle pattern, having moved below the lower side, which typically leads to more downside over time. The token has dropped below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has fallen below 50 and pointed downwards for several months.

Analysts note a risk that the token could fall to the psychological level of $0.50. A bullish reversal would be confirmed only if the price moves above the 200-day moving average level of $1.3514.