XRP News Today: XRP Rallies as US CPI and Crypto Bill Lift Sentiment

XRP snaps a seven-day losing streak as crypto-related legislative developments and US economic data boost sentiment.

Uncertainty about the progress of the Market Structure Bill triggered a seven-day losing streak. However, updates from the US Senate Agriculture Committee and Senate Banking Committee fueled demand for XRP.

US inflation figures contributed to the price recovery, supporting a bullish short- to medium-term price outlook for XRP.

Below, I will explore the key drivers behind recent price trends, the medium-term (4-8 weeks) outlook, and the key technical levels traders should watch.

US Inflation Triggers XRP Rally

The US CPI report faced intense scrutiny on Tuesday, January 12, amid fading bets on a March Fed rate cut. Headline inflation and the core inflation rate remained steady at 2.7% and 2.6%, respectively, in December, supporting a more dovish Fed rate path.

Headline inflation had eased from 3% in November to 2.7%. However, analysts attributed softer November inflation to the US government shutdown and a drop in consumption. December’s report suggests a cooling inflation backdrop, supporting Fed rate cuts. XRP rallied from $2.0659 to a session high of $2.1823 after the release of the inflation data.

Crypto-Related Regulatory Developments Lift Sentiment

While US inflation data increased demand for XRP, the progress of the Market Structure Bill likely had a greater impact on the token’s price action.

The US Senate Banking Committee released a bipartisan 278-page text on Tuesday, January 13, paving the way for a Committee vote on Thursday, January 15.

Crypto in America host Eleanor Terrett shared updates from Capitol Hill, stating:

“Senators now have 48 hours to make amendments to this text, so unclear if these provisions will stay the same for Thursday.”

Terrett was referring to text on stablecoin yields, which stated that companies cannot pay interest just for holding balances.

However, the text did deliver some good news for XRP and several other altcoins. Terrett commented on the text, stating:

“It says that if a token is the main asset of an ETF listed on a national securities exchange and registered under Section 6 of the Securities Act as of January 1, it would not be required to file disclosures that other tokens are required to file. In other words, under this bill, XRP, SOL, LTC, HBAR, DOGE, and LINK are treated the same as BTC and ETH from day one.”

Crypto-Related Regulatory Developments Underscore Digital Asset Prioritization

Developments in early January underscored US lawmakers’ intent to deliver much-needed crypto legislation to ensure the US’s position as the global leader in innovation.

Crucially, Patrick J. Witt, executive director of the President’s Council of Advisors for Digital Assets, spoke in an interview on Crypto in America, stating that he believed it was reasonable to expect two to four Senate Banking Democrats to vote yes on the Market Structure Bill. Witt added:

“So, I think a very strong bipartisan vote for this would be a great signal, obviously, and as we talk about it’s momentum game, and a strong bipartisan vote sets us up very well for the floor vote.”

If cleared, the text could further legitimize XRP as a non-security following Judge Torres’ 2023 court ruling and the resolution of the SEC vs. Ripple case.

Cleared text from the US Senate Banking Committee would need to be merged with the US Senate Agriculture Committee markup for a Senate floor vote. On January 13, the US Senate Agriculture Committee announced a release date of January 21 for the legislative text and a Committee markup on January 27.

XRP remains highly sensitive to developments in crypto-related legislation. The token rallied 14.69% on July 17 in reaction to the US House of Representatives passing the Market Structure Bill to the Senate.

The token then rallied from a December 31 $1.8746 to an eight-week high of $2.4151 on January 6, following the announcement of the US Senate Banking Committee’s January 15 markup.

The progress of the Market Structure Bill affirmed the bullish short- to medium-term price outlook for XRP.

XRP Price Targets

Robust XRP-spot ETF inflows, increased XRP utility, and crypto-related legislative developments affirm a positive short-term (1-4 weeks) outlook, with a $2.5 price target.

Furthermore, hopes for the Senate passing the Market Structure Bill reaffirm the bullish longer-term price targets:

• Medium-term (4-8 weeks): $3.0.
• Longer-term (8-12 weeks): $3.66.

Key Risks to Bullish Outlook

Several events could challenge the positive outlook. These include:

• The Bank of Japan announces a hawkish neutral interest rate (potentially 1.5%-2.5%), signaling multiple rate hikes. A higher neutral rate may trigger a yen carry trade unwind, which would affect the short-term outlook.
• US economic data and the Fed are dampening bets on an H1 2026 rate cut.
• US lawmakers challenge the Market Structure Bill, further delaying crypto legislation.
• XRP-spot ETFs report outflows.

These events would likely trigger a sell-off, sending XRP below $2, which would indicate a bearish trend reversal.

Technical Analysis: Key Levels to Watch

XRP rallied 5.43% on Tuesday, January 13, reversing the previous day’s 0.93% loss to close at $2.1644. The token outperformed the broader crypto market cap, which gained 4.62%.

The price recovery sent XRP above its 50-day EMA, while the token remained below the 200-day EMA. The EMAs indicated a bullish near-term but a bearish longer-term bias. However, the fundamentals remain bullish and dominant.

Key technical levels to watch include:

• Support levels: $2.0, $1.75, and then $1.50.
• 50-day EMA support: $2.0788.
• 200-day EMA resistance: $2.3296.
• Resistance levels: $2.5, $3.0, and $3.66.

Viewing the daily chart, a break above $2.2 would bring the 200-day EMA into play. A sustained move through the 200-EMA would indicate a bullish trend reversal, bringing the $2.5 resistance level into play.

Crucially, a breakout above the EMAs would reinforce the bullish medium-term outlook and the longer-term (8-12 weeks) $3.66 price target.

Fundamental Drivers to Monitor

Near-term price drivers include:

• XRP-spot ETF flow trends.
• US economic indicators and the Fed’s policy stance.
• US crypto-related legislative developments.

Holding Above $2 Remains Key

Avoiding a drop below the $2 psychological support level remains critical for the short- to medium-term outlook. Bullish fundamentals continue to outweigh bearish longer-term technicals, suggesting a sustained recovery. The rebound and January’s gains affirmed the bullish structure and constructive short- to medium-term bias.

A break above $2.2 would pave the way toward the upper trendline. A sustained move through the upper trendline would reaffirm the bullish trend reversal and validate the bullish structure, supporting the price targets:

• Medium-term (4-8 weeks): $3.0.
• Longer-term (8–12 weeks): target of $3.66.

However, a break below $2.0 would expose the lower trendline. A sustained fall through the lower trendline would invalidate the bullish structure, indicating a bearish trend reversal.

Outlook:

Looking ahead, today’s US producer prices, central bank chatter, legislative developments, and XRP-spot ETF flows will dictate the near-term price outlook.

Softer US producer prices, rising bets on a March Fed rate cut, and a dovish BoJ neutral rate (potentially 1%-1.25%) would boost sentiment. Robust demand for XRP-spot ETFs and bipartisan support for the Market Structure Bill would reaffirm the constructive bias.

In summary, strong XRP-spot ETF inflows and crypto-related legislative developments support a medium-term (4–8 weeks) move to $3.0. A March Fed rate cut and the Senate passing the Market Structure Bill would reinforce the longer-term (8–12 weeks) price target of $3.66.

Looking beyond 12 weeks, these factors are likely to send XRP above its all-time high $3.66. A breakout above $3.66 would reaffirm a price target of $5 over a 6- to 12-month timeline.