XRP has fallen back below the $1 mark, creating a notable disconnect between the token’s recent price performance and growing activity on the XRP Ledger (XRPL). Crypto analyst Lark Davis argues that investors may be underestimating XRP’s longer-term potential as adoption across the network continues to expand.
The latest decline comes after XRP managed to remain above $1 for 635 consecutive days. That run ended on August 11, when the token briefly dropped to about $0.9915, marking its first sub-$1 trade since November 2024.
The move is significant because $1 had become an important psychological support level for traders. A renewed failure to hold it could leave XRP vulnerable to lower price zones, with some analysts watching the $0.70–$0.90 region. On the other hand, a sustained move above roughly $1.03 could improve the short-term technical outlook.
Momentum from investment products has also weakened. Spot XRP products recorded approximately $3.27 million in net inflows during August so far, compared with $27.29 million in July, according to SoSoValue data.
Adoption Tells a Different Story
Despite the weakness in price, several indicators point to continued growth across the XRPL ecosystem.
The network has attracted major institutional attention, including Aviva Investors, which manages approximately $351 billion in assets. The firm launched a tokenized fund on the XRP Ledger after receiving approval from the Central Bank of Ireland.
Tokenized real-world assets on XRPL have also expanded substantially. Their total value is now around $4.06 billion, representing an increase of roughly $2.5 billion over six months.
Buckle up! If $XRP tags its 3-month 40 EMA, similar to 2023 & 2024, the retest could form a strong base for accumulation, and equally the launchpad for a future expansion phase. The $0.90/70 price range remains a sweet spot if price cannot reclaim $1.24. Thank you @MoonLamboio 🫡 pic.twitter.com/tqOrs1dk3x
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) August 14, 2026
Davis believes these developments deserve consideration when assessing XRP’s future. The central question, however, remains whether increased use of the ledger will translate into stronger demand for the XRP token itself.
That distinction is particularly important because Ripple’s major institutional partnerships in 2026 have reportedly used RLUSD for settlement rather than XRP. This gives bears a strong argument: the underlying infrastructure can grow without necessarily creating equivalent demand for the native asset.
At the same time, bulls point to XRP’s potential role within the broader settlement ecosystem and argue that increasing network adoption could eventually create structural demand for the token.
On-chain activity provides another potentially bullish signal. Santiment identified 32 new wallets holding at least one million XRP over three months, although wallet counts do not necessarily correspond to individual investors because one entity can control multiple addresses.
Analysts Remain Divided
Price expectations are increasingly polarized.
Standard Chartered has maintained a target of $2.80, while analyst Ali Martinez has warned that XRP could potentially fall toward $0.62 if selling pressure intensifies.
Historical performance adds another layer of caution. XRP suffered a decline of roughly 95% during the two years following its 2018 peak. The token is also trading substantially below its July 2025 record high.
Meanwhile, XRP’s monthly Relative Strength Index (RSI) has reached an unusually low level, with some analysts describing it as the most extreme reading in approximately 12 years. From a contrarian perspective, such readings can suggest that selling has become excessive, although they do not guarantee an immediate reversal.
Ultimately, the debate surrounding XRP comes down to one unresolved issue: does growth in the XRP Ledger translate into lasting value for XRP itself?
The network’s adoption figures show that businesses and institutions are increasingly building on the infrastructure. Whether that expansion eventually produces meaningful and sustained demand for XRP remains uncertain.
For investors, that disconnect between network growth and token performance may be the most important factor to watch as XRP attempts to reclaim the $1 level.
