XRP Faces Volatility as Futures Open Interest Surges Ahead of CPI Report
XRP's price is hovering near a critical $1 level after its futures open interest rose to 2.67 billion XRP, the highest since October. This surge in activity indicates that traders are expecting increased volatility, especially with the upcoming U.S. Consumer Price Index (CPI) report.
The CPI data will have a significant impact on inflation expectations and Federal Reserve policy, which could lead to higher interest rates and Treasury yields. If the reading is hotter than expected, it could put pressure on risk assets like XRP. On the other hand, a softer CPI could weaken the dollar and support crypto prices.
Bitcoin and ether show muted expectations for CPI-driven moves, but surprises in inflation data could trigger market action. Prediction markets assign just 7% chance for XRP to hit new all-time high by end of 2026, reflecting skepticism amid its struggle to stay above $1.