XRP price is hovering around $1.35 as markets closely monitor the January US Consumer Price Index (CPI) report due later today.
Summary
- Markets expect the January US CPI to show persistent inflation, with core prices remaining elevated, which could delay Federal Reserve rate cuts and put pressure on crypto assets.
- XRP is trading near $1.35, below its 50-day moving average around $1.84, with the broader trend still bearish on the daily chart.
- Key support lies at $1.30 and $1.20, while resistance lies at $1.40 and in the $1.80 to $1.85 region; IPC data could determine the next breakout or breakdown.
Economists expect headline inflation to be slightly higher month over month. Annual inflation is expected to be around 2.5%. The core CPI, which excludes food and energy, is also expected to show continued price pressures.
If the CPI turns out to be higher than expected, it could reduce the chances of the Federal Reserve cutting rates in the near term. This would likely strengthen the US dollar and weigh on risky assets, including cryptocurrencies like the Ripple token (XRP).
However, a weaker-than-expected figure could bolster expectations for monetary easing and spark a relief rally in crypto markets.
XRP Price Prediction and Key Levels
XRP is currently trading around $1.35, down about 0.6% on the day, according to the daily price chart.
The chart shows a clear downward trend since the beginning of January. XRP failed to hold above the $2.20-$2.30 region and printed a series of lower highs and lower lows. The price is trading well below the 50-day simple moving average (SMA), which sits near $1.84, signaling continued bearish momentum.
The recent sell-off towards the $1.20 area was followed by a brief rebound, but the bullish momentum has faded. Candles are now compressing near the $1.35 level, suggesting indecision ahead of the CPI release.
The Chaikin Money Flow indicator currently sits around -0.12, remaining in negative territory. This indicates capital outflows and weak buying pressure, reinforcing the bearish bias.
For XRP price, immediate support lies near $1.30, followed by the recent low around $1.20. A break below $1.20 could open the door to the psychological $1.00 level.
On the upside, initial resistance lies near $1.40, with stronger resistance at the 50-day SMA around $1.84.
A higher CPI reading could push XRP below $1.30 and retest $1.20. A lower inflation reading could trigger a rebound towards $1.40 and potentially $1.60 in the near term.
