The cryptocurrency market has witnessed sharp volatility in recent days, with XRP plunging to a two-year low of $1 today, on August 6, 2026, an important development for crypto traders. Late last week, XRP plummeted to $1.00, its lowest level since July 2024, according to data from market analyst Eira. The asset, which currently trades at $1.05, has been down 6.6% over the past 30 days, underperforming the larger digital asset market, a drop that has left many enthusiasts trying to understand what’s happening.
Why XRP Crashed to $1?
The fall, which also affects other assets, has been impacted by current difficult global economic conditions and geopolitical tensions, causing investor bearishness towards cryptocurrencies. Due to weak market demand, XRP risks plunging below the psychologically important $1 support level as spot ETF inflows dry up and network activity declines. The fourth-largest altcoin has been in steady decline for over a year, erasing over 65% of its value in the last 12 months. Traders who entered the market during the bullish trends in 2024 and 2025 are currently at a loss, prompting many to exit their holdings.
Currently, XRP’s trading volume across crypto exchanges has declined significantly, indicating weaker market demand. On-chain metrics show that whales have reduced token accumulation, while most retail customers are not buying. This reduced enthusiasm explains why the asset is experiencing a severe slump with no defense, raising the risk of losing the crucial $1 support and making a drop to the $0.80 mark likely soon.
Falling Wedge Pattern Signals Breakout: Analyst
Despite market weakness, analyst Eira identified potential price reversal signals today, suggesting XRP’s downtrend is losing momentum. Based on technical analysis, the analyst noted that XRP/USD is forming a clear falling wedge, suggesting that selling pressure is gradually subsiding as buyers begin to regain control.
According to the analyst, XRP has reached its most oversold level in history, with the price currently trading at $1.05, down 71.3% from its $3.65 ATH. Today, the asset touched $1:00, the lowest price level seen two years ago, with the monthly RSI indicating the asset is in its most oversold range, much more severe than during the 2020 pandemic plunge.
 
According to the analyst’s argument, since the asset has reached its most oversold level, strategic investors (mostly whales) are poised to enter the market to intensify accumulation, taking advantage of market dips to amass tokens at lower prices. As reported by the analyst, token accumulation at lower levels will unlock a potential bullish breakout in the coming days, pushing prices from $1.40 to $1.90, and possibly even to $3.40.
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