XRP Holds Key Support as Markets Digest Hot Inflation Data
XRP is changing hands around $1.3664, a modest 0.75% gain on the day, as the token continues to defend the $1.35 support zone that's held since early September. That floor faced a real test this week: Tuesday's CPI report sent XRP surging in tandem with BTC and ETH, only for the rally to fade almost as fast as it appeared, pulling price back down to the $1.35–$1.36 range.
The token is currently hovering right at its 20-day moving average of $1.3586 and just above its 200-day average of $1.3548 — a tight technical squeeze that's kept trading confined to a narrow band for roughly two weeks now, even accounting for this week's volatility.
The RSI reading of 53.76 suggests momentum has cooled to neutral territory, a sharp contrast to the overbought levels above 75 recorded during August's rally to $1.70. Adding to the technical picture, a downward-sloping trendline stretching back to that late-August peak continues to act as resistance overhead.
Analysts Eye a Deep Liquidity Pool Near $1
Market watcher ChartNerd has pointed out that while XRP has clusters of liquidity sitting between $1.50 and $1.80 to the upside, an even bigger pool of liquidity has built up near $0.98.
Given that open interest remains high and traders are leveraged on both sides of the market, ChartNerd suggests the coin could still get pulled toward either level — potentially spiking first to flush out short positions before a steeper decline later in the year that would catch longs off guard instead.
ETF Inflows Mark Ninth Straight Winning Week
Spot XRP ETFs pulled in another $18.98 million for the week ending September 11, according to data from SoSoValue — the ninth consecutive week of net inflows. That streak has pushed cumulative inflows to $1.70 billion, with total assets under management now at $1.45 billion. The only blemish in this run came back on July 10, when funds saw a modest $7.18 million pulled out.
Fed Rate Hike Odds Spike After Inflation Surprise
August's inflation data came in hotter than expected, with consumer prices climbing 0.4% compared to just 0.1% in July. That jump has pushed traders' expectations of a Federal Reserve rate hike next week to nearly 90%, per Fed Tool Watch — and it's largely what fueled this week's sharp swings in XRP before the token settled back near its support shelf.
Where XRP Could Go From Here
Bullish Case — Target: $1.50
XRP defending the $1.35 level and breaking through the descending trendline near $1.40.
A confirmed close above $1.45 would likely open the door to the $1.50–$1.80 liquidity zone that ChartNerd flagged, a move that would also be supported by nine straight weeks of ETF inflows. Target: $1.50.
Bearish Case — Risk Level: $0.98
XRP breaking below $1.35 as broader risk appetite sours on rate-hike fears. With leverage skewed heavily toward long positions and open interest still elevated, a cascade of liquidations — per Coinglass data — could send price tumbling toward that larger liquidity pocket near $0.98, a drop of more than 20% from where the token sits today.
A Support Level Worth Watching
Zooming out, XRP has now fallen roughly 20% over the past three weeks, sliding from its $1.70 high down to the $1.35 area. Some of that decline looks like straightforward profit-taking, with large holders offloading or shifting around an estimated 90 million XRP in just the past week.
Network usage has also cooled considerably — daily active addresses have plunged more than 90%, from 388,492 down to 38,163, pointing to a notable pullback in on-chain participation during this correction.
Even with whales trimming positions and network activity thinning out, XRP has managed to hold the line near $1.35, a level that previously saw roughly 2.29 billion tokens change hands.
If the support continue to hold and price reclaim $1.38, a move back toward $1.60 — and potentially $1.68 — could be on the table. For now, the outlook stays cautiously bullish as long as $1.35 holds, with the $0.98 liquidity zone standing out as the main downside risk to watch.
Sources: FinancialMarkets News, SoSoValue, Fed Tool Watch, Coinglass, Alicharts
