Ripple's Price Trapped in Narrow Range Amid Inflation Data and Fed Expectations
Ripple's price action has been constrained to a narrow technical range in recent trading sessions, with key support at $1.00 being a significant level of interest for investors.
This follows the release of US inflation data for last month, which showed a slight increase in consumer prices. As a result, traders are now pricing in a 55% probability that the Federal Reserve will leave interest rates unchanged at its September meeting, down from almost evenly divided expectations beforehand.
XRP reserves on Binance have also been rising, reaching over 2.61 billion tokens worth an estimated $2.68 billion as of Tuesday. This increase in liquidity could potentially create modest pressure on the upside, but a break below the short-term support level at $1.00 could weaken the prospects of a recovery.
The payments token has fallen around 6.5% in August and has extended its total decline to roughly 14% from its July peak of $1.18. US-listed spot XRP exchange-traded funds (ETFs) also continue to show weak performance, with trading activity remaining subdued.