California’s Digital Financial Assets Law (DFAL) is set to take effect on July 1, requiring firms serving state residents in the crypto sector to either obtain a license, submit a completed application with the Department of Financial Protection and Innovation (DFPI), or halt covered activities. So far, no Ripple entity appears on the public list of applicants, fueling uncertainty as XRP dips below $1.10.

The law broadly covers digital asset activity, including crypto-to-fiat and crypto-to-crypto trading, transfers, custody, and the issuance of reserve-backed assets. These areas closely align with Ripple’s California operations, such as its payments network, custody services, and RLUSD stablecoin.

Companies can comply in one of three ways: secure a DFAL license, maintain a pending application, or qualify for a limited exemption—mainly reserved for banks, certain trust firms, and entities already overseen by the SEC or CFTC.

Ripple has participated in the regulatory process, including submitting a comment letter urging the DFPI to eliminate overlapping money transmitter licensing rules. However, this engagement does not indicate that an application has been filed.

Legal analysts, including Chambers-ranked firms, view DFAL as one of the most sweeping state-level crypto regulatory frameworks in the U.S.

Will XRP Hold the $1 Level?

XRP is currently hovering near $1.10, well below earlier projections of $2.50. Momentum remains weak, with rallies consistently rejected in the $1.15–$1.20 range, reflecting ongoing selling pressure. Despite continued focus on Ripple’s regulatory outlook, markets have yet to price in a definitive positive outcome.

Investors are closely tracking legal developments tied to Ripple. A prior court ruling that XRP is not inherently a security removed a major overhang, but unresolved issues—such as penalties and potential injunctions—still carry weight for the company’s future operations and market sentiment.

From a technical perspective, XRP must reclaim the $1.15–$1.20 range to signal any meaningful recovery. If momentum strengthens and regulatory developments turn favorable, resistance could emerge between $1.30 and $1.50, though a sustained breakout would likely require a strong catalyst.

On the downside, support lies around $1.05 and $1.00. A weakening regulatory outlook or broader market decline could put these levels at risk. The $1.00 mark remains a key psychological threshold, with a break below it potentially triggering further losses.

For now, the market is in wait-and-see mode, looking for confirmation rather than speculation. While regulatory clarity could improve sentiment, XRP’s longer-term direction will depend on both legal outcomes and a return of stronger demand.