XRP Holds Steady Near $3 Amid Market Volatility
Ripple’s XRP is trading around the key $3.00 level on Thursday. The cryptocurrency market saw increased volatility after the US released its latest Consumer Price Index (CPI) data. Investors are now focused on the Federal Reserve’s upcoming interest rate decision next week.
US Inflation Rises, Impacting Federal Reserve Outlook
The US Consumer Price Index rose 0.4% in August, up from 0.2% in July, according to the Bureau of Labor Statistics. On a yearly basis, inflation increased to 2.9%, the highest since January. This rise reflects the effects of higher tariffs imposed by the US government.
The Core CPI, which excludes food and energy prices, increased 0.3% in August, the same as July. Year-over-year, the Core CPI rose 3.1%. Fed officials watch this number closely to understand long-term inflation trends.
Following the CPI report, the chance of a 0.25% interest rate cut in September dropped slightly from 91% to 88.7%, according to the CME Group’s FedWatch tool.
Retail Demand for XRP Remains Strong
Retail interest in XRP stays high. Data from CoinGlass shows XRP futures Open Interest rose to $8.15 billion on Thursday, up from $7.37 billion on Sunday. This increase suggests investors are confident XRP can continue its recovery toward its July 18 high of $3.66.
Technically, XRP is holding above the 50-day Exponential Moving Average (EMA) at $2.91. Traders are buying on dips near this support. The Moving Average Convergence Divergence (MACD) indicator shows a buy signal since Monday, supporting a bullish outlook.
The Relative Strength Index (RSI) is at 54, indicating growing buying momentum. However, traders should watch for any drop below the $2.91 EMA, which could signal a pullback.
