XRP recovered toward $1.34 after briefly dropping below $1.32 as stronger-than-expected US producer inflation unsettled cryptocurrency markets.
The token lost nearly 6% on Thursday before buyers stepped in around the closely watched support area. The rebound limited the decline, although the broader technical outlook remained bearish.
The immediate question is whether XRP can sustain its recovery above $1.32. Holding that level would signal stabilization, while another breakdown could bring $1.25 back into focus.
Hot PPI data adds to macroeconomic pressure
September’s US Producer Price Index increased 1.3% month-over-month, exceeding analyst expectations of 0.5%.
Core PPI, which excludes food and energy prices, rose 0.7% monthly against a forecast of 0.3%. That also represented an acceleration of 0.5 percentage points from the previous month.
The release followed a hotter-than-expected Consumer Price Index reading, reinforcing concerns about persistent inflation and the Federal Reserve’s policy outlook.
Although the figures initially weighed on cryptocurrencies, the subsequent recovery showed that buyers were willing to absorb supply near recent support levels.
The volatile trading followed approximately $1.7 billion in cryptocurrency liquidations over four days, according to CoinGlass.
Much of that pressure reflected a developing long squeeze, with falling prices forcing leveraged bullish positions to close.
The market’s post-PPI reversal then caught traders positioned for further losses. More than $300 million in short positions were liquidated over the last 24 hours.
Those figures cover the broader cryptocurrency market, not XRP alone. They nevertheless illustrate how sharp reversals can create losses on both sides of leveraged trading.
Demand through XRP-linked exchange-traded funds remained subdued despite the price rebound.
The products attracted approximately $13 million in net inflows so far in October, according to SoSoValue data.
The funds could record a monthly total of roughly $26 million if that pace continued, a 79% decline from September.
Weak ETF inflows suggest these products are providing limited fresh buying support. A sustained improvement would offer stronger evidence that investment appetite is recovering alongside the token’s price.
Onchain data provides a potentially more constructive signal. According to Santiment data, XRP transfers into exchanges have declined following a pronounced increase between September 10 and September 27.
Lower exchange inflows may indicate fewer tokens are moving to trading venues for potential sale.
However, the metric does not establish that selling has stopped or that all exchange deposits are intended for liquidation.
The decline could ease one source of supply pressure, particularly if buyers continue defending nearby support.
XRP needs $1.45 breakout to strengthen reversal case
The recovery around $1.32 keeps that area central to XRP’s near-term outlook. Sustained trading above it would support the possibility that the pullback is finding a floor.
Further gains could also pressure remaining short positions, although a larger short squeeze would depend on positioning and follow-through buying.
The more important reversal threshold identified in the source analysis is $1.45. A sustained move above that level would strengthen the case for a change in trend.
The article’s longer-term $1.80 target remains a bullish scenario, not an immediate expectation.
Until XRP clears resistance, downside risk persists. Losing $1.32 again would weaken the rebound and increase the possibility of a retest of $1.25.
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