XRP came under pressure on Thursday, sliding alongside broader crypto markets after a hotter-than-expected inflation print reignited concerns about the Fed’s rate path. The drop triggered a sharp round of long liquidations, even as recent ETF inflows pointed to underlying demand.
XRP is trading near $1.36, down 4.6% over the past 24 hours. Price was already under pressure earlier in the day before the release of August PPI data made things worse. Headline PPI inflation rose to 5.4%, above the 5.3% expected, while core PPI climbed to 4.6%, its highest reading since June 2026.
The hotter print has cut into expectations for a near-term rate cut, adding pressure across risk assets including crypto.
The pullback triggered a heavy round of liquidations. Over the past 24 hours, $13.85 million in XRP positions were wiped out, with long positions accounting for $13.66 million of that total, a sign that traders positioned for further upside were caught off guard. The pace accelerated into the PPI release: in just the last four hours, $6.40 million was liquidated, with $6.35 million of it coming from longs.
Open interest has held relatively steady near $3.06 billion despite the move, suggesting the drop was driven more by aggressive long unwinds than a broad exodus from the market. Funding rates have stayed mostly positive in recent weeks too, pointing to leveraged traders still leaning bullish heading into the print.
Spot XRP ETFs told a different story. Inflows totaled $12.29 million on September 9, led by Bitwise’s XRP fund at $9.30 million and Grayscale’s GXRP at $2.98 million. Total net assets across XRP ETFs have now surpassed $1.51 billion, with cumulative net inflows reaching $1.70 billion since launch, signaling continued institutional demand despite the recent price drop.
At current levels, XRP sits just above the 0.5 Fibonacci retracement near $1.35, drawn from the broader $0.99-to-$1.70 range. Holding above this level keeps the token in range for a retest of the 0.382 level near $1.43. A break below $1.35 opens the door to the 0.618 support near $1.26, with $1.15 as the next level below that at the 0.786 retracement.
Taken together, the move reflects a genuine macro shock rather than one losing structural support. Long liquidations and the inflation surprise explain the short-term drop, but steady ETF inflows and relatively stable open interest suggest underlying demand hasn’t broken down. A hold above $1.35 would keep the recovery case intact; losing it would shift focus toward the $1.26 zone as the next line of defense.
