Ripple’s XRP and Stellar’s XLM extended their weekly declines on Thursday as hotter US inflation data strengthened concerns about Federal Reserve policy and weakened appetite for riskier assets. XRP has fallen more than 7% this week, while XLM has dropped over 11%, according to the supplied market snapshot. Both tokens have slipped below important technical levels, leaving prices vulnerable to further losses if buyers fail to defend nearby support.
Hot US Inflation Pressures Altcoins
The US Consumer Price Index rose 3.7% year over year in September, accelerating from 3.4% in August. Monthly inflation reached 0.6%, while core CPI, which excludes food and energy, increased 2.6% annually and 0.3% monthly. Gasoline prices climbed 9.1% during the month, accounting for more than half of the headline CPI increase. These figures reinforced concerns that inflation could remain above the Federal Reserve’s 2% target.
Higher interest rates can weigh on cryptocurrencies by increasing the appeal of interest-bearing assets and tightening financial conditions. Bitcoin’s decline below $81,000 in the supplied report added to pressure across the altcoin market.
Markets were also monitoring expectations for the Federal Reserve’s October 27–28 meeting. However, the latest available reporting on October 14 put the probability of an October rate increase below 25%, rather than confirming the 27% estimate cited earlier. The inflation report may influence expectations, but a rate hike is not guaranteed.
Investors were watching the US Producer Price Index and remarks from Fed Chair Kevin Warsh for additional clues about inflation and monetary policy.
XRP Price Forecast: $1.300 in Focus
XRP traded near $1.318, below its 100-day exponential moving average (EMA) at $1.339 and its 200-day EMA at $1.377. The 50-day EMA, at $1.390, adds another resistance level above the market.
The Relative Strength Index (RSI) near 36 indicates weak momentum, while the negative Moving Average Convergence Divergence (MACD) reading supports the bearish outlook. An RSI approaching 30 can signal oversold conditions, but it does not guarantee a rebound.
Key levels to monitor include:
- Support: $1.300; a decisive break could expose XRP to further losses.
- Resistance: $1.339, $1.377 and $1.390.
- Higher barrier: $1.540, followed by resistance near $1.900.
A sustained move above the EMA cluster would help improve the short-term outlook.
Stellar Price Forecast: $0.173 Support
XLM traded around $0.180, below its 100-day EMA at $0.191, 200-day EMA at $0.192 and 50-day EMA at $0.196. The former rising trendline near $0.190 has also become resistance after the breakdown.
Its RSI near 37 and bearish MACD indicate continued selling pressure. Immediate support sits around $0.180, followed by $0.173 and the broader structural floor at $0.153. A recovery above $0.190–$0.196 would be an early sign of improving momentum.
Derivatives data further reflects caution: XRP’s long-to-short ratio stood at 0.80 and XLM’s at 0.79 in the supplied snapshot. Ratios below one indicate that short positions outweigh long positions in the measured accounts, although they do not guarantee further declines.
Conclusion:
XRP and XLM remain technically vulnerable as inflation uncertainty weighs on risk appetite. Holding their respective support levels could allow consolidation, but a break lower may extend losses. Traders should watch upcoming US economic data, Fed signals and price reactions around resistance before treating any rebound as a confirmed trend reversal.
Sources & Methodology
Primary-source standard: Market-moving facts should link to original data releases, regulator notices, company filings or official project announcements whenever available. Secondary reporting is used for additional context, not as a substitute for original evidence.
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