XRP Falls After Hot US CPI Report as Inflation Fears Pressure Crypto Markets
XRP came under renewed selling pressure after U.S. inflation data for September exceeded economists' expectations, prompting investors to reassess the Federal Reserve's monetary policy outlook. XRP fell from $1.38 to an intraday low of $1.3574, while Bitcoin dropped below $83,000 and the broader cryptocurrency market lost approximately $40 billion in market capitalization within 45 minutes.
The U.S. Bureau of Labor Statistics reported stronger-than-expected increases in both headline and core consumer prices. The figures raised concerns that inflation could remain elevated, potentially keeping monetary policy tighter for longer and weighing on risk-sensitive assets, including cryptocurrencies.
US CPI Exceeds Forecasts as Energy Prices Rise
Consumer prices increased by 0.6% month-over-month in September, pushing annual inflation to 3.7% from 3.4% in August. The annual rate exceeded economists' consensus forecast of 3.6%, reversing the modest disinflation trend described in the source report.
Energy costs accounted for a substantial portion of the increase. Gasoline prices jumped 9.1% during September, contributing approximately half of the monthly headline CPI gain, while overall energy prices rose 5.2%.
Core CPI, which excludes food and energy, increased by 0.3% month-over-month, above the 0.2% forecast. Annual core inflation accelerated to 2.6% from 2.4%, also exceeding expectations of 2.5%.
Real earnings declined by 0.5%, adding to concerns about the pressure sustained inflation could place on consumers and financial markets. The report also prompted traders to reassess the outlook for Federal Reserve policy ahead of the October 27-28 meeting.
Treasury yields rose and equity futures retreated as markets evaluated the possibility of further monetary tightening. Before the inflation release, markets had already priced in as much as a 64% probability of additional interest rate increases, according to the source report.
Bitcoin and XRP Decline After Inflation Data
Bitcoin fell 1.23% within 15 minutes of the CPI release, dropping from $83,794 to $82,765 as concerns about tighter monetary policy triggered selling across the cryptocurrency market.
XRP followed with a 1.63% decline in less than 15 minutes, falling from $1.38 to an intraday low of $1.3574 before attempting a modest recovery. The token's 15-minute candle between 12:30 PM and 12:45 PM UTC recorded a 1.35% loss, marking its steepest single-candle decline since the previous Thursday.
The wider market also experienced a sharp contraction. Approximately $40 billion in cryptocurrency market capitalization disappeared within 45 minutes as investors reacted to the inflation figures.
XRP Price Analysis: $1.3624 Support Breaks
The selloff weakened XRP's short-term technical structure. After reaching $1.3574, the token fell another 0.40% to $1.3566, moving below the $1.3624 support level that had held during earlier selling pressure.
Attempts to recover $1.3624 encountered renewed selling, with the former support area acting as resistance. XRP's 15-minute Relative Strength Index fell from 63.35 to 37.27 in less than 30 minutes, reflecting the speed of the decline.
At the time of the analysis, XRP was attempting to stabilize near $1.36. However, sellers continued to defend the $1.3624 level, limiting the token's recovery attempts.
What Hotter Inflation Could Mean for XRP
The inflation report could influence XRP's performance during the fourth quarter as investors monitor the outlook for interest rates and broader risk appetite. XRP entered October after gaining 48% in the third quarter, its strongest quarterly performance in four years, according to the source report.
Despite that quarterly advance, XRP remained 59% below its July 2025 all-time high of $3.65 and was down 17.6% year-to-date.
Analysts had identified the $1.35-$1.38 range as an important near-term support zone. The move below $1.3624 has placed that range under greater pressure, particularly if inflation concerns continue to weigh on investor sentiment.
A sustained break below the zone could weaken XRP's recovery prospects, while renewed buying could help the token regain ground. The direction of the next move remains uncertain as traders assess the inflation outlook and the Federal Reserve's upcoming policy decision.
data source:thecryptobasic.com
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.