XRP's Breakout Hopes Hinge on Catalysts Beyond ETF Inflows

XRP has been the top performer among the largest cryptocurrencies since its late-August rally, gaining 36% in value. Despite this growth, the token continues to face challenges at the $1.40 resistance level.

The recent US inflation report showed a 3.4% year-over-year increase in August, matching market expectations but exceeding forecasts by 10 basis points. This has increased the likelihood of an interest-rate hike in September to 87%.

Cryptocurrency prices initially surged after the report, with several tokens breaking above key resistance levels. However, this momentum faded over the weekend as XRP retested its $1.31 support level before bouncing back to $1.37.

The broader rally for XRP remains intact, but some investors remain unconvinced that the previous bearish cycle has ended. US spot XRP exchange-traded funds have attracted approximately $32 million in net inflows so far this month, with a potential total of close to $90 million by the end of September.