- Hotter PPI triggered an XRP sell-off, reinforcing pressure as rate expectations rise.
- Long liquidations dominated, with $13.66M wiped out as bullish bets unraveled.
- Spot XRP ETFs saw $12.29M in inflows a day before the sell-off, signaling underlying demand.
XRP came under pressure on Thursday, sliding alongside broader crypto markets after a hotter-than-expected inflation print reignited concerns about the Fed’s rate path. The drop triggered a sharp round of long liquidations, even as recent ETF inflows pointed to underlying demand.
Hot PPI Print Adds to the Selling Pressure
XRP is trading near $1.36, down 4.6% over the past 24 hours. Price was already under pressure earlier in the day before the release of August PPI data made things worse. Headline PPI inflation rose to 5.4%, above the 5.3% expected, while core PPI climbed to 4.6%, its highest reading since June 2026.
The hotter print has cut into expectations for a near-term rate cut, adding pressure across risk assets including crypto.
Long Traders Bear the Brunt of the Move
The pullback triggered a heavy round of liquidations. Over the past 24 hours, $13.85 million in XRP positions were wiped out, with long positions accounting for $13.66 million of that total, a sign that traders positioned for further upside were caught off guard. The pace accelerated into the PPI release: in just the last four hours, $6.40 million was liquidated, with $6.35 million of it coming from longs.
Open interest has held relatively steady near $3.06 billion despite the move, suggesting the drop was driven more by aggressive long unwinds than a broad exodus from the market. Funding rates have stayed mostly positive in recent weeks too, pointing to leveraged traders still leaning bullish heading into the print.
ETF Demand Holds Up Despite the Pullback
Spot XRP ETFs told a different story. Inflows totaled $12.29 million on September 9, led by Bitwise’s XRP fund at $9.30 million and Grayscale’s GXRP at $2.98 million. Total net assets across XRP ETFs have now surpassed $1.51 billion, with cumulative net inflows reaching $1.70 billion since launch, signaling continued institutional demand despite the recent price drop.
Support and Resistance Levels to Watch
At current levels, XRP sits just above the 0.5 Fibonacci retracement near $1.35, drawn from the broader $0.99-to-$1.70 range. Holding above this level keeps the token in range for a retest of the 0.382 level near $1.43. A break below $1.35 opens the door to the 0.618 support near $1.26, with $1.15 as the next level below that at the 0.786 retracement.
Taken together, the move reflects a genuine macro shock rather than one losing structural support. Long liquidations and the inflation surprise explain the short-term drop, but steady ETF inflows and relatively stable open interest suggest underlying demand hasn’t broken down. A hold above $1.35 would keep the recovery case intact; losing it would shift focus toward the $1.26 zone as the next line of defense.
Related: XRP Stuck in Range as $1.50 Breakout Level Comes Into Focus
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