Why XRP may need more than ETF inflows to break above $1.40

XRP remains the best-performing cryptocurrency among the market’s five largest assets, gaining 36% since its late-August rally. 

However, renewed macroeconomic uncertainty and persistent selling pressure near $1.40 continue to limit its recovery.

US inflation rose 3.4% year over year in August, broadly matching market expectations.

Month-over-month inflation exceeded forecasts by 10 basis points, pushing the probability of a September interest-rate hike to 87%.

Cryptocurrency prices initially rallied after the report, with several tokens breaking above key resistance levels. Those gains faded over the weekend, with retesting the $1.31 support level on Sunday before bouncing back to $1.37. 

Although XRP’s broader rally remains intact, some investors appear unconvinced that the previous bearish cycle has ended.

XRP ETF inflows could reach $90 million in September

US spot XRP exchange-traded funds have attracted approximately $32 million in net inflows so far this month, according to SoSoValue data.

If inflows continue at their current daily pace, the funds could receive close to $90 million by the end of September. 

That would represent a 41% decline from August’s total but would still exceed the inflows recorded in June and July.

The figures indicate that institutional demand for XRP remains positive, even though investment momentum has weakened compared with the previous month.

Continued ETF inflows could provide additional support for XRP, particularly if broader cryptocurrency market conditions improve.

Adoption of Ripple USD, Ripple’s native stablecoin, has accelerated alongside XRP’s recent rally.

RLUSD’s market capitalization increased from $1.6 billion to $2.4 billion in one month, representing a 50% gain. 

The expansion suggests that more capital is entering Ripple’s payments and financial-services ecosystem.

Ripple has recently focused on growing its prime brokerage operations, securing $275 million last month to expand the business. That funding may have contributed to greater RLUSD activity and trading volumes.

Growing stablecoin adoption could serve as an early signal of increased network usage.

If that trend continues, it may eventually strengthen demand for XRP as Ripple pursues its goal of becoming a leading blockchain provider for cross-border payments.

XRP holds $1.32 support as Bull Flag develops

XRP’s daily chart shows a bull flag forming after its late-August rally, suggesting that the token has entered a consolidation phase.

A recent upward spike failed to break the formation as sellers defended the $1.40 area.

However, XRP rebounded from approximately $1.32, indicating that the former resistance level may now be acting as support.

The Relative Strength Index stands at 54, placing momentum modestly in bullish territory without indicating overbought conditions.

Holding above $1.32 would preserve XRP’s constructive outlook. A confirmed breakout from the bull flag and above $1.40 could signal the resumption of the broader uptrend.

However, the flag’s downward slope shows that sellers currently have the upper hand during consolidation. 

XRP may require another bullish catalyst, such as progress on US crypto market-structure legislation or stronger institutional inflows to break above resistance and target higher levels.