XRP Drops Toward $1 As ETF Inflows Cool Off

XRP is currently testing the critical $1 support level, trading near $1.03 after a slight decline over the past day. This price action comes as momentum for the Digital Asset Market CLARITY Act stalls in the U.S. Senate. With lawmakers heading into their August recess, a final vote on the bill is unlikely until mid September at the earliest.

Institutional investors are reacting to this political deadlock by pulling back their capital. Spot XRP ETFs saw monthly net inflows drop from over $131 million in May to roughly $27 million in July. This 79% decline suggests that big players are waiting for Congress to pass solid federal laws rather than relying on current regulatory interpretations.

Legislative progress is currently caught in a struggle between party leadership and lobbying efforts from commercial banks. Since the Senate version of the bill differs from the House version, both chambers will have to reconcile their differences quickly once they return in September. Prediction markets have already lowered the odds of the bill passing this year to just 17 percent.

Traders are now watching the $1 level closely. If the support breaks, it may signal that the market is finally losing patience with the slow pace of Washington politics. For now, the focus remains on whether lawmakers can clear the procedural hurdles required to turn the bill into law before the November election cycle takes full priority.