XRP Price: Inflation Data Today Could Trigger Major Move

TLDR

• XRP is trading around $1.35, down 0.6% as markets await the January U.S. CPI inflation report
• Economists expect headline inflation around 2.5% annually with core prices remaining elevated
• XRP has dropped 38% in a month and is trading below its 50-day moving average of $1.84
• Key support levels are at $1.30 and $1.20, while resistance stands at $1.40 and $1.84
• Analysts predict XRP could fall to $0.75-$0.85 if it breaks below the $1 level

XRP is trading near $1.35 as cryptocurrency markets prepare for the January U.S. Consumer Price Index report scheduled for release today. The report could influence Federal Reserve policy decisions and crypto market direction.

The market expects headline inflation to tick higher on a month-over-month basis. Annual inflation is projected to land around 2.5%.

Core CPI, which excludes food and energy prices, is also expected to show elevated price pressures. This measure is closely watched by Federal Reserve officials when making policy decisions.

A hotter-than-expected CPI reading could reduce the chances of near-term Federal Reserve rate cuts. This would likely strengthen the U.S. dollar and pressure risk assets including cryptocurrencies.

A softer-than-expected inflation print could boost expectations of monetary easing. This scenario might trigger a relief rally across crypto markets.

XRP is down roughly 0.6% on the day according to the daily price chart. The cryptocurrency has dropped 38% over the past month.

Technical Analysis Shows Bearish Momentum

The chart shows a clear downtrend since early January. XRP failed to hold above the $2.20-$2.30 region and has printed a series of lower highs and lower lows.

The price is trading well below the 50-day Simple Moving Average, which sits near $1.84. This indicates continued bearish momentum in the market.

The recent sharp sell-off toward the $1.20 zone was followed by a brief rebound. However, upside momentum has faded in recent sessions.

Candles are now compressing near the $1.35 level. This suggests indecision ahead of the CPI release.

The Chaikin Money Flow indicator is currently around -0.12, remaining in negative territory. This indicates capital outflows and weak buying pressure.

Key Price Levels to Watch

Immediate support lies near $1.30, followed by the recent swing low around $1.20. A break below $1.20 could open the door toward the $1.00 level.

On the upside, initial resistance sits near $1.40. Stronger resistance exists at the 50-day SMA around $1.84.

Cryptocurrency analyst Tara shared a chart showing XRP could reach a maximum high of $1.65. However, if the altcoin fails to hold momentum, chances of falling back to $1.30 remain high.

The analyst explained that if XRP breaks below the $1 level, the shock could lead to a round of sell-offs. The altcoin is forecasted to fall to the $0.75-$0.85 level in that scenario.

XRP has already erased its yearly gains and could fall to its 2024 lows. The last time the token traded at these levels was in October 2024.

A hotter CPI reading could push XRP below $1.30 and retest $1.20. A softer inflation print may spark a rebound toward $1.40 and potentially $1.60 in the short term.

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