XRP's Rally Stalls at $1.40 as Inflation Worries Weigh on Market
XRP's recent rally has seen it become the best-performing cryptocurrency among the market's top five assets, gaining 36% since its late-August surge. However, renewed macroeconomic uncertainty and persistent selling pressure near $1.40 have limited its recovery.
US inflation rose 3.4% year over year in August, matching expectations but exceeding forecasts by 10 basis points for month-over-month inflation. The probability of a September interest-rate hike has increased to 87% as a result.
Cryptocurrency prices initially rallied after the report, with several tokens breaking above key resistance levels. However, these gains faded over the weekend, and XRP retested the $1.31 support level on Sunday before rebounding to $1.37.
US spot XRP exchange-traded funds have attracted approximately $32 million in net inflows so far this month, according to SoSoValue data. If these inflows continue at their current pace, the funds could receive close to $90 million by the end of September, representing a 41% decline from August's total but exceeding June and July's inflows.
The figures indicate that institutional demand for XRP remains positive, despite weakened investment momentum compared to the previous month. Continued ETF inflows may provide additional support for XRP, particularly if broader cryptocurrency market conditions improve.