$XRP is currently leading the pack among the top five cryptocurrencies, having surged by 36% following its rally at the end of August.
Nevertheless, ongoing macroeconomic uncertainties and continued selling pressure around the $1.40 mark are hindering its recovery.
The year-over-year inflation rate in the US rose to 3.4% in August, aligning closely with market forecasts.
On a month-over-month basis, inflation exceeded expectations by 10 basis points, raising the likelihood of an interest rate increase in September to 87%.
Initially, cryptocurrency prices experienced a rally after the report was released, with multiple tokens breaking past key resistance levels. However, these gains diminished over the weekend, as the price dipped to the $1.31 support level on Sunday before rebounding to $1.37.
While the broader upward movement of $XRP remains robust, some investors are still skeptical that the previous bearish trend has fully reversed.
$XRP ETF inflows projected to reach $90 million in September
According to data from SoSoValue, US spot $XRP exchange-traded funds have seen approximately $32 million in net inflows this month.
If the current daily inflow trend persists, it’s expected that these funds could total nearly $90 million by the end of September.
This would mark a 41% decrease compared to August’s totals, yet it would still surpass the inflow figures seen in both June and July.
The data highlights that institutional interest in $XRP remains strong, even though the investment momentum has eased compared to the previous month.
Continued inflows into ETFs could lend additional support to $XRP, especially if the overall cryptocurrency market conditions improve.
The adoption of Ripple USD, the stablecoin developed by Ripple, has also surged in line with $XRP’s recent gains.
The market capitalization for $RLUSD rose from $1.6 billion to $2.4 billion in just one month, reflecting a substantial 50% increase.
This growth indicates that more funds are entering Ripple’s payments and financial services ecosystem.
Ripple has recently intensified its focus on expanding its prime brokerage operations, having secured $275 million last month for this purpose. This investment likely contributed to the increased activity and trading volumes of $RLUSD.
The rising adoption of stablecoins may serve as an early indicator of increased network utilization.
If this trend continues, it could ultimately bolster demand for $XRP, as Ripple aims to establish itself as a leader in blockchain solutions for cross-border transactions.
$XRP maintains support at $1.32 as a Bull Flag takes shape
The daily chart for $XRP shows the formation of a bull flag following the late-August rally, indicating a period of consolidation for the token.
A recent price spike was met with resistance at the $1.40 level, preventing further upward movement.
However, $XRP managed to bounce back from around $1.32, suggesting that this former resistance level may now be functioning as support.
The Relative Strength Index currently sits at 54, which indicates a moderate bullish momentum without signaling overbought conditions.
Maintaining a position above $1.32 would support $XRP’s positive outlook. A confirmed breakout from the bull flag and a rise above $1.40 could indicate the resumption of a broader upward trend.
Nonetheless, the downward slope of the flag suggests that sellers currently dominate during this consolidation phase.
$XRP might need another bullish trigger, such as advancements in US crypto market structure legislation or an increase in institutional inflows, to surpass the resistance and reach higher price levels.