Why is the XRP price rising today?

US inflation report sends cryptocurrencies like XRP soaring

XRP's gains today are part of a rebound that began after the May 15 U.S. Consumer Price Index (CPI) reported cooling inflation.

U.S. core inflation rose 0.3% to 3.6% in March, the lowest reading since April 2021 excluding food and energy. In response, bond traders increased bets on the first rate cut of the year from November to September, according to CME data.

Since the CPI release, XRP’s price has risen 5%, suggesting that the prospect of rate cuts has boosted investor interest in crypto assets. 

XRP Whales Bought $55 Million Worth of Tokens

Today’s rise in XRP’s price further coincides with signs of accumulation by the wealthiest investors, also known as “whales.”

According to data resource platform Santiment, entities with balances of between 1 million and 10 million XRP have increased their holdings by 110 million tokens (worth about $55 million) in the past two weeks, as shown in the chart below shared by analyst Ali Martinez.

During this period, XRP's price has risen by about 10%, indicating that there is strong whale support behind the rebound.

Giant Symmetrical Triangle Pattern

From a technical perspective, XRP's rise is part of a rebound that began after testing the lower trendline of its multi-year descending triangle pattern.

As of May 18, XRP price is expected to close below the 200-week (blue) and 50-week (red) exponential moving averages (EMA) at around $0.525 and $0.550. Doing so could see the cryptocurrency test the upper trendline of the triangle at around $0.585 as the next upside target.

The 0.585 target acted as support during May-June 2021 and January 2022.

This article does not contain investment advice or recommendations. Every investment and trading action involves risk, and readers should do their own research when making a decision.