Key takeaways
XRP drops 4.09% amid rising U.S. inflation, weakening Fed rate cut hopes. Persistent sell pressure, exchange inflows, and failed resistance tests continue to suppress bullish momentum across markets.
Ripple [XRP] dropped 4.09% to $3.11, at press time, as hotter U.S. inflation figures reduced hopes for a September Fed rate cut, triggering a wider sell-off across crypto markets.
Producer Price Index (PPI) rose from 0% in June to 0.9% in July, while the annual figure climbed from 2.6% to 3.7%. Consumer Price Index (CPI) stayed at 2.7%, with the core CPI rising to 3.1%.
These stronger-than-expected readings pushed Fed rate cut odds lower, adding pressure on risk assets and weakening investor confidence across the market.
Sell pressure intensifies in XRP markets
Spot Taker CVD data reveals sellers dominating market activity over the past three months. This metric, which measures the cumulative difference between buy and sell volumes, shows sustained taker sell dominance.
Such conditions often signal stronger downward momentum as market participants aggressively offload positions. While buyers have occasionally stepped in during brief rallies, their efforts have been quickly absorbed by sellers.
Consequently, the imbalance in market orders continues to weigh on XRP’s short-term price structure, preventing any meaningful bullish breakout from taking hold.
Exchange flows reflect sustained selling pressure
Spot netflow data paints a bearish picture for XRP. At press time, the metric showed a $16.79 million positive netflow, meaning more XRP was moved into exchanges.
Such inflows typically signal preparation for selling, adding to market supply and pressuring prices. This comes after weeks of fluctuating flows, where occasional negative readings failed to offset the selling implications of large inflows.
Therefore, the increased availability of XRP on exchanges reinforces bearish sentiment and makes it harder for the token to sustain any meaningful rally attempts.
Are traders reducing leverage as caution sets in?
Open Interest (OI) has dropped nearly 10% in the last 24 hours, as of writing, showing that traders are actively closing positions.
This sharp reduction suggests a growing reluctance to hold leveraged bets amid market uncertainty.
Lower OI typically reflects reduced speculative participation, which can limit short-term volatility but also removes liquidity that fuels strong moves.
Consequently, the combination of falling leverage and prevailing sell pressure reinforces the bearish tone.
For XRP, this means fewer catalysts to drive prices higher in the near term unless broader sentiment shifts positively.
XRP continues to struggle with key resistance levels
XRP’s recent attempts to push past $3.31 and $3.66 have repeatedly failed, with each move higher met by selling pressure.
At press time, the Parabolic SAR trended below price levels, signaling weakening bullish momentum.
Additionally, DMI readings show a narrowing gap between the +DI and -DI lines, pointing to reduced buyer strength.
These technical signals align with on-chain weakness, reinforcing the difficulty XRP faces in breaking resistance.
Unless bulls regain momentum with strong volume, the token risks remaining trapped below these critical levels in the short term.
Source: TradingView
Conclusively, XRP’s decline stems from macroeconomic headwinds, persistent sell pressure, exchange outflows, and repeated failures to clear resistance.
Together, these factors have kept bullish momentum suppressed.
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