XRP News Today: Cryptocurrencies Face Volatility as CPI Data Looms

Major cryptocurrencies such as Bitcoin, Ethereum, and XRP are facing potential volatility this week due to the upcoming release of Consumer Price Index (CPI) data. The broader cryptocurrency market has been on an upward trend over the past three days, driven by positive factors such as a favorable US jobs report and the resumption of trade talks between the US and China. This has helped the market recover from a flash crash that occurred on Thursday.

However, this optimism is expected to be short-lived as major cryptocurrencies like Bitcoin, Ethereum, and XRP are at risk of experiencing significant volatility this week. This volatility is anticipated due to the US-China trade talks scheduled for Monday in London, which are seen as a highly volatile catalyst with the potential to cause sharp movements in the market. Another critical factor to watch is Wednesday’s CPI data release, which is crucial for market sentiment.

According to a survey, inflation is likely to have spiked in May due to tariffs. If the CPI report shows a higher-than-expected number, it could trigger a bearish move, dampening crypto market sentiment by indicating a slowdown in consumer spending. Conversely, if the CPI comes in lower than expected, it could lead to significant gains for top cryptocurrencies and altcoins.

Bitcoin is currently trading at $107,663 and is recovering after finding support from the dynamic 50-day Exponential Moving Average (EMA) band. It has broken the short-term declining trendline and is headed towards the $112,000 mark. If the momentum continues and the upcoming US CPI reports are favorable, Bitcoin could reach a new all-time high. Many experts hope for inflation to print soft, as the ongoing momentum looks strong and suggests that Bitcoin is not done yet.

However, the platform Truflation highlights that inflation may be picking up, as it began at 1.35% in May and ended at 2.06%. If the CPI prints similar to what the data is projecting, the ongoing momentum could be short-lived and could risk falling around $100,000 or even to $95,000. Additionally, on-chain data revealed a concerning trend: small wallets holding up to 1 BTC have been accumulating strongly. Historically, when these “small fish” holders buy with conviction, it often hints that whales could be preparing to sell into that liquidity. This retail FOMO is considered by many as a fatal warning sign that a sell-off could be on its way.

In the last three days, the Bitcoin price advancement has boosted altcoin prices as well. XRP and Ethereum have risen by 8% and 6%, respectively. However, these gains are not enough to clear their bounded range; the XRP and ETH prices are facing key hurdles. If the CPI comes in higher, a fall in both altcoin prices seems likely. However, if the CPI comes in soft, it could be a short-term catalyst to clear their nearest hurdles.

If the XRP price manages to rise, the target for this week is $2.65, and for Ethereum, it is $3,066. On the downside, XRP could fall to $1.80, and ETH towards $2,000, respectively.