XRP recovered to $1.34 after briefly dipping below $1.32 as US producer inflation data triggered volatility across cryptocurrency markets. The token fell nearly 6% on Thursday before buyers intervened near a closely monitored support level. This rebound limited further losses, though analysts remain cautious about the overall technical trend.
Inflation data sparks broad crypto volatility
September’s US Producer Price Index (PPI) rose 1.3% month-over-month, significantly exceeding analyst expectations of 0.5%. Core PPI, which strips out food and energy, increased 0.7% against forecasts of 0.3%, marking a sharper rise of 0.5 percentage points over the previous month.
These figures followed a higher-than-expected Consumer Price Index release, intensifying concerns around stubborn inflation and its impact on Federal Reserve policy. Ripple effects were felt throughout the crypto market, with traders quickly reacting to signs of persistent inflation pressure.
Persistent inflation and rapid PPI growth have heightened risk aversion across risk assets, making stabilized support levels crucial for tokens like $XRP.
In the aftermath, cryptocurrencies experienced heightened volatility as buyers stepped in to absorb supply around recent support. According to data from CoinGlass, roughly $1.7 billion in cryptocurrency positions were liquidated over a four-day period. Much of the selling appeared to result from a developing long squeeze, with leveraged bullish positions unwinding amid falling prices.
Market action reversed after the PPI release, catching traders positioned for additional downside. More than $300 million in short positions were liquidated in the past 24 hours, underscoring the risks faced on both sides of leveraged trading in volatile markets.
XRP’s specific price movements reflected these macro dynamics but were also shaped by developments in derivative and ETF-linked trading. Despite the rebound, demand through XRP-focused exchange-traded funds has remained muted.
XRP ETF inflows drop sharply
Exchange-traded funds that track XRP have registered approximately $13 million in net inflows so far in October, according to SoSoValue data. If this pace continues, October could close with net inflows of $26 million, marking a 79% decline compared to September.
| Period | XRP ETF Net Inflows |
|---|---|
| September | $124 million |
| October (projected) | $26 million |
This significant drop in fresh buying interest through ETF products suggests investors remain cautious, despite signs of technical stabilization in price.
Onchain data provides some positive signals. Analytics platform Santiment reported that transfers of XRP into exchanges have declined after a heightened period of inflows between September 10 and September 27. Lower exchange inflows may point to reduced selling pressure, as fewer tokens are being moved to venues for potential sale.
However, analysts caution that decreased inflows do not necessarily confirm the end of selling or imply all deposits have stopped being liquidated. The reduction may still relieve some downward pressure, especially if buyers continue to defend key support levels.
Mini dictionary: Santiment, a blockchain analytics platform, provides real-time and historical onchain data analysis for cryptocurrencies, enabling market participants to monitor exchange flows, sentiment, and key trading metrics.
XRP outlook: Key support at $1.32, resistance at $1.45
XRP’s near-term trajectory depends on its ability to hold above the $1.32 support zone. Maintaining this level could indicate stabilization, increasing the likelihood that the recent drop has found a temporary floor. Conversely, renewed weakness below $1.32 would raise the risk of revisiting $1.25 support.
In the medium term, analysts have identified $1.45 as a crucial resistance level. A sustained breakout above this price point would signal a stronger reversal and could build momentum for further gains. The longer-term target of $1.80 remains a bullish scenario but depends on overcoming technical barriers and renewed inflows.
Persistent weakness in ETF inflows and a mixed macro backdrop limit immediate upside for $XRP, but a break above $1.45 could drive a more robust reversal if buyers sustain their momentum.
Until the token can clear this major resistance, downside risks persist, as sellers may revisit recent lows if market sentiment deteriorates further.
