1 Reason XRP Price Could Surge in August

XRP price could see a surge in the upcoming month as traders watch fresh developments around U.S. crypto legislation. 

The Ripple price fell 6% to $1.17 in the past 24 hours. The decline was due to the heavy liquidations of leveraged long positions in derivatives markets.

The sell-off wiped out more than $25 million in long positions in XRP. This caused traders to rush out of positions and pressure on the price of the token. The drop was also preceded by broader weakness in the crypto market.

Bitcoin dropped to less than $63,000, and escalating U.S.-Iran tensions damaged investor confidence. Consequently, there was a renewed selling pressure on risk assets.

CLARITY Act Vote Could Arrive In August

However, XRP could recover if the CLARITY Act advances in August. Senator Cynthia Lummis indicated that a Senate vote can be passed beyond the July 4 recess. Legislators have yet to reconcile recommendations of major committees.

🏛️ Lummis Shares #CLARITYAct Senate Vote Timline

Senator #CynthiaLummis has offered the clearest timeline yet for the #CLARITYAct, indicating that a Senate floor vote could slip to August rather than taking place before the July 4 recess.

According to Lummis, lawmakers still… pic.twitter.com/0P2VjeBJnc

— CoinGape (@CoinGapeMedia) June 4, 2026

They are also considering rules of ethics and amendments of GENIUSAct. Better crypto regulations would help to boost confidence in the market and enhance the mood of XRP.

XRP ETF Outflows Hit $5.34M as Bitwise Leads Withdrawals

The XRP exchange-traded products were put back under strain, with daily net outflows amounting to $5.34 million on June 3. Bitwise was leading the downturn with an exit of $4.06 million but 21Shares and Grayscale also registered exits. 

Although the session was weak, cumulative net inflows were at a high position of $1.42 billion. The overall net assets amounted to $1.03 billion or 1.39% of the market cap of XRP. The trading volume was at 13.13 million, reflecting the interest of investors even in the face of declining ETF volumes.

Will XRP Price Rebound After Falling Below $1.20?

On the four-hour chart, the XRP price was still under intense selling pressure as bears were continuing a declining channel formation. 

XRP price recently broke below the $1.20 support zone and is now testing the lower boundary of the channel. The decline saw an increase in trading volume, indicating that there was more bearish trading. 

In the meantime, the MACD is negative, and the lines on the signals are further extended. The RSI has dropped to 24, indicating deeply oversold conditions.

Should sellers retain control, the XRP price would test the near-term support at around $1.10. Any further decline can pave the way to $1.05. Nevertheless, the oversold states may cause a temporary recovery. 

In that instance, the XRP price can initially target the level of $1.20 then the level of $1.30 will become the resistance. Breaking out of the downward channel would enhance the chances of recovery and move the momentum back to buyers.