XRP continues to trade above the $1.32 support level, but the cryptocurrency is facing persistent resistance near $1.40. Despite a strong performance relative to other major digital assets, renewed macroeconomic uncertainty and active selling pressure are capping upside moves.
XRP has gained roughly 36% since its late-August rally, making it the best performer among the top five cryptocurrencies by market capitalization. However, the token has been unable to sustain a breakout above the $1.40 mark, a level that has repeatedly acted as a ceiling in recent sessions.
Macro headwinds weigh on sentiment
US inflation data released in August showed a year-over-year increase of 3.4%, in line with market expectations. However, the month-over-month figure exceeded forecasts by 10 basis points, pushing the probability of a September interest-rate hike to 87%. This development initially sparked a rally across cryptocurrencies, with several tokens breaking above key resistance levels. Those gains faded over the weekend, and XRP retested the $1.31 support on Sunday before bouncing back to $1.37.
The broader uptrend for XRP remains intact, but some investors are skeptical that the previous bearish cycle has fully ended. The macro environment, particularly the prospect of tighter monetary policy, continues to create uncertainty for risk assets.
ETF inflows: supportive but not decisive
US spot XRP exchange-traded funds have attracted approximately $32 million in net inflows so far in September, according to SoSoValue data. If the current daily pace continues, the funds could see close to $90 million in inflows by month-end. That would represent a 41% decline from August's total but would still exceed the inflows recorded in June and July.
These figures indicate that institutional demand for XRP remains positive, though momentum has weakened compared with the previous month. Continued ETF inflows could provide additional support, particularly if broader cryptocurrency market conditions improve. However, as seen in recent weeks, ETF inflows alone may not be sufficient to overcome the selling pressure at $1.40.
RLUSD growth signals ecosystem expansion
Adoption of Ripple USD (RLUSD), Ripple's native stablecoin, has accelerated alongside XRP's recent rally. RLUSD's market capitalization increased from $1.6 billion to $2.4 billion in one month, a 50% gain. This expansion suggests that more capital is entering Ripple's payments and financial-services ecosystem.
Ripple has been focusing on growing its prime brokerage operations, securing $275 million last month to expand the business. That funding may have contributed to greater RLUSD activity and trading volumes. Growing stablecoin adoption could serve as an early signal of increased network usage, which may eventually strengthen demand for XRP as Ripple pursues its goal of becoming a leading blockchain provider for cross-border payments.
Technical outlook: bull flag but seller pressure
XRP's daily chart shows a bull flag forming after its late-August rally, suggesting a consolidation phase. A recent upward spike failed to break the formation as sellers defended the $1.40 area. However, XRP rebounded from approximately $1.32, indicating that the former resistance level may now be acting as support.
The Relative Strength Index stands at 54, placing momentum modestly in bullish territory without indicating overbought conditions. Holding above $1.32 would preserve XRP's constructive outlook. A confirmed breakout from the bull flag and above $1.40 could signal the resumption of the broader uptrend.
However, the flag's downward slope shows that sellers currently have the upper hand during consolidation. XRP may require another bullish catalyst, such as progress on US crypto market-structure legislation or stronger institutional inflows, to break above resistance and target higher levels. As noted in a recent analysis, the $1.50 level remains a key hurdle for a potential 48% rally.
In the meantime, traders are watching whether XRP can maintain its support levels amid ongoing macro uncertainty. The interplay between ETF inflows, stablecoin growth, and technical resistance will likely determine the next major move. For more context on how ETF inflows are affecting other cryptocurrencies, see our coverage of Ethereum's similar struggle.
This article is for informational purposes only and does not constitute financial advice.
