XRP Trading Intensifies Today as Critical US CPI Data Shapes Crypto News and Market Direction

As crypto news today unfolds, XRP is drawing market attention at $1.33, down 2.13% over the past 24 hours. The broader market focus remains squarely on the January U.S. Consumer Price Index (CPI) report, which arrives later today and could prove decisive for risk assets including cryptocurrencies. With inflation expectations running sticky and the Federal Reserve’s policy outlook potentially hanging in the balance, traders are bracing for significant volatility in the coming hours.

Market Expectations: How Today’s CPI Could Sway the Crypto News Narrative

Economists are anticipating that January’s headline CPI will show a modest uptick on a month-over-month basis, with annual inflation settling near the 2.5% range. More importantly, core CPI—which strips out volatile food and energy components—is expected to reveal continued price pressures. This is the data point that matters most to Fed decision-makers and, by extension, to crypto investors betting on near-term monetary easing.

If the CPI print comes in hotter than anticipated, it would likely reduce expectations for imminent Federal Reserve rate cuts. A stronger dollar would typically follow, pressuring risk assets across the board. Cryptocurrencies, including XRP, would face headwinds in such a scenario. Conversely, a softer-than-expected inflation reading could reignite expectations for monetary easing and potentially spark a relief rally throughout digital asset markets—a bullish outcome for crypto news and sentiment.

XRP Technical Analysis: Key Levels and Current Market Structure

XRP is currently consolidating around $1.33, having retreated significantly from its recent highs. The daily chart reveals a pronounced downtrend that has persisted since early January. The token failed to sustain levels above the $2.20–$2.30 range and has since established a pattern of lower highs and lower lows, a classic bearish structure.

The 50-day Simple Moving Average (SMA) sits near $1.84, well above the current price, underscoring the strength of the downside pressure. XRP’s position below this key moving average signals that the intermediate-term trend remains bearish. Recent price action saw a sharp decline toward the $1.20 support zone followed by a brief bounce, but upside momentum has failed to gain traction. Candles are now compressing near current levels, suggesting a period of consolidation and indecision before the CPI announcement.

The Chaikin Money Flow indicator remains in negative territory at approximately -0.12, reflecting capital outflows and weak buying interest. This technical signal reinforces the bearish bias and suggests that demand has not yet returned to support a sustained rally.

Support and Resistance: Where XRP Goes From Here

On the downside, immediate support is positioned near $1.30, with the more significant support zone at the recent swing low around $1.20. Should bears push through the $1.20 level, the psychological $1.00 benchmark could come into play. On the upside, initial resistance lies at $1.40, with stronger resistance clustered around the $1.60 level. The 50-day SMA at $1.84 represents the most formidable resistance for a potential bullish reversal.

Two Scenarios: CPI’s Impact on XRP’s Next Move

The Hawkish Outcome: If CPI arrives hotter than consensus expects, XRP could face additional selling pressure. A break below $1.30 would target the $1.20 support, potentially extending losses toward $1.00. In this crypto news scenario, risk-off sentiment would dominate, and the U.S. dollar strength would weigh on all cryptocurrencies.

The Dovish Outcome: A softer-than-expected inflation print would likely catalyze a relief rally. XRP could stage a rebound toward the $1.40 resistance, with further upside potential reaching $1.60 in the short term. Such an outcome would improve the overall tone of crypto news and potentially reignite bullish interest across the digital asset complex.

The next few hours will be pivotal for both XRP and the broader crypto market. Today’s CPI data serves as the critical catalyst that could determine whether the ongoing downtrend continues or whether a potential reversal scenario begins to unfold.