Inflation Surprise Triggers Broad Retreat in Crypto Market

Two of the most closely watched altcoins in the crypto market, XRP and XLM, are struggling to hold their ground after a surprise US inflation reading triggered a broad retreat from risk assets. According to financial analyst Tyler Hill, both tokens are testing critical support zones that could determine their near-term direction.

XRP is trading near $1.32, down 5.13% over the past 24 hours, while XLM has fallen by 4.54%. The inflation data, which exceeded Wall Street's consensus forecast, has revived concerns that the Federal Reserve may keep interest rates higher for longer or even hike again at its policy meeting next week.

Hill is watching two specific price ranges for both tokens. For XRP, a rebound from the current $1.31 to $1.34 range could pave the way for resistance around $1.50. However, a decisive breakdown would likely send the token toward what Hill calls a 'golden zone' between $1.22 and $1.11, implying additional downside of 10% to 18%.

The coming week is packed with potential market movers, including the Consumer Price Index report on Friday, the Clarity Act vote on Tuesday, and the highly anticipated FOMC meeting on Wednesday.