XRP Under Pressure – Here Is Why the Price Is Down Today

XRP is facing significant selling pressure, with the token value falling by 5.3% in the past 24 hours. According to market data, this decline is greater than both Bitcoin and Ethereum, which both decreased by 3.3% during the same period. At the time of writing, XRP is priced at $3.11, falling 3.45% for the day. The opening price of the trading session was nearly $3.2474 before a strong sell-off in the afternoon pushed the price down to around $3.10, and since then it has fluctuated within a narrow range. According to data from the Bureau of Labor Statistics, the Producer Price Index (PPI) of the United States increased by 3.7% in July. This increase surpassed the average forecast of economists at 3% and rose from the 2.6% in June. The 0.9% increase compared to the previous month is the strongest rise in over three years, signaling persistent inflation. The stronger-than-expected index has changed investor sentiment by reducing the likelihood that the Federal Reserve will soon cut interest rates. Risk assets, including cryptocurrencies, have been affected by a wave of profit-taking as traders prepare for a longer period of higher borrowing costs. Inflation data causes a fall in XRP price Market analysts indicate that the prolonged impact of tariffs could be a driving force behind the recent inflation surge. Rising production costs may lead to greater price pressures, complicating the Fed's path to policy easing. XRP has increased in price earlier this year due to expectations that interest rates would fall. However, new inflation data has diminished that outlook and caused a wave of sell-offs across major cryptocurrencies. According to data from CoinMarketCap, the sharpest fall of XRP occurred right after the inflation report was released. The price volatility almost reflects the downturn across the cryptocurrency market, indicating how macroeconomic data can affect the valuation of digital assets. With inflation risks still being monitored, traders may remain cautious. Market participants will continue to watch economic indicators that could shape expectations for monetary policy and thus guide the price of XRP in the short term.