XRP Price Prediction: $1 Support On Focus After Bridge Hack

XRP (XRP) has managed to stay above the $1 threshold today following the release of last month’s inflation data in the United States.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 3.4% in the past 12 months, down 10 basis points compared to June and in line with analysts’ expectations for the period.

The market’s predictions concerning future interest rate decisions by the Federal Reserve were immediately revised downwards following the news.

Odds of a Rate Increase in September Drop to 38% After Stable Inflation Figure

Data from FedWatch shows odds of a 25-basis-point rate hike in September have been steadily dropping from 54% a week ago to 38% after today’s inflation print.

Market participants seem to believe that the Fed will continue to delay a rate increase despite strong internal pressures. During the last meeting, three governors disagreed with the decision to leave rates unchanged.

The primary reason for their dissent is probably the fact that inflation is nearly twice as high as the Fed’s target rate of 2%.

Although we have not seen a pronounced reaction in the crypto market to today’s inflation data, we do see the fact that XRP is holding above the $1 line as an indication that the market could be getting ready for a technical rebound.

XRP Stays Above $1 Despite Coreum Bridge Hack – What Next?

This week, the Coreum Bridge was hacked. Hackers drained 200,000 XRP tokens from the protocol by targeting a flaw in its verification system.

The XRP community stressed that this was a specific flaw within Coreum’s coding. The XRP Ledger was not breached in any way. However, these kinds of incidents tend to undermine the public’s trust in blockchain-based applications like bridges and DeFi protocols.

Heading to the daily chart, we can see that the price action reacted promptly to a temporary break below $1 yesterday. The token briefly dipped to $0.996 but quickly recovered.

Lower odds of a rate increase could contribute to pushing the price of XRP higher off this key support line if positive momentum builds and sentiment improves.

We have been stating that a challenging macroeconomic backdrop is what’s keeping a lid on crypto prices in the near term.

However, bears are still in control of the price action based on momentum readings. In this regard, the Relative Strength Index (RSI) sits at 36. Whenever this oscillator dips below 40, it is commonly interpreted as a sell signal.

Hence, unless we get a strong bounce that pushes XRP out of its descending price channel formation in the near term and, ideally, above the $1.15 level, our baseline scenario for the token is still bearish.

In case of a break below $1, the downside risk would be quite high at around 35%, as XRP could entirely shed its November post-election, post-favorable-court-ruling profits if the market believes that this stable inflation print is not enough to change the prevailing narrative.