XRP price is trading in a tight range as investors await the December Personal Consumption Expenditures (PCE) inflation report, due Friday, Feb. 20. The token’s next move could hinge not just on crypto-specific catalysts, but on broader macroeconomic data that shapes Federal Reserve policy expectations.
Summary
- XRP is consolidating near $1.43 ahead of the December PCE inflation report, a key macro event that could influence Federal Reserve policy expectations.
- November’s PCE came in hot at 2.8%, but Truflation data shows cooling trends, with estimates at 1.54% headline and 1.94% core, raising hopes of a softer official print.
- Technically, XRP remains in a broader downtrend but is stabilizing between $1.35 and $1.50, with resistance at $1.47 and support at $1.35 and $1.20.
The PCE index is the Fed’s preferred inflation gauge, particularly core PCE, which excludes food and energy and tracks persistent price pressures. November’s PCE and core PCE both came in at 2.8%, surprising to the upside and reinforcing concerns that inflation progress had stalled.
However, fresh data from Truflation suggests cooling pressures.
Its real-time estimates currently place headline PCE at 1.54% and core PCE at 1.94%, well below the official November print. Traders are now watching to see whether the U.S. Bureau of Economic Analysis reflects that cooling trend.
As inflation data directly impacts rate expectations, it also influences risk-sensitive assets like XRP. A softer reading could revive hopes of future rate cuts and support crypto prices, while a hotter print may pressure the market through a stronger dollar and tighter financial conditions.
XRP price analysis: Consolidation after sharp drop
XRP is trading around $1.43 at press time, stabilizing after a steep decline from the early-January high near $2.40. The daily chart shows a clear downtrend marked by lower highs and lower lows.
The recent capitulation candle near $1.20 triggered a strong bounce, but the Ripple token (XRP) has since entered a tight consolidation range between roughly $1.35 and $1.50.
The 9-day moving average (~$1.43) is attempting to flatten, while the 21-day moving average (~$1.47) remains above price and continues sloping downward. This suggests short-term stabilization but a broader bearish structure remains intact.
The Balance of Power (BBP) indicator sits slightly negative at -0.09, indicating sellers still have a marginal edge, though bearish momentum has eased compared to early February’s sharp selloff.
Immediate resistance lies at $1.47, aligning with the 21-day MA. A break above that could open a move toward $1.60. On the downside, key support rests near $1.35, followed by stronger support around $1.20.
With XRP coiling ahead of the PCE release, Friday’s inflation data could act as the catalyst for the next decisive move.