In a dramatic turn of events, XRP experienced a near 6% drop during Wednesday’s trading session, triggered by the U.S. Producer Price Index (PPI) soaring beyond forecasts. Analysts had anticipated a monthly increase of 0.5%, but the actual figure was a staggering 1.3%, largely driven by rising energy prices that are pushing wholesale costs upward.
Despite the initial dip, bulls quickly stepped in, defending the $1.32 support level and propelling XRP back to a session high of $1.34 by October 16, marking a 2.18% recovery.
Wider market trends are also concerning, as crypto liquidations surged to $1.7 billion over the past four days, with over $100 million in short positions liquidated within a mere 12 hours as the market experienced a reversal. The overall cryptocurrency market cap fell by 3.24% to $2.71 trillion, with Bitcoin slipping below $81,000 and Ethereum trading under $2,400.
ETF Flows and Exchange Data
Investor sentiment surrounding XRP remains subdued, with net inflows to XRP-linked ETFs totaling just $13 million for October, according to recent data. This anticipated run rate of $26 million marks a significant 79% decline from September’s figures.
In a more extended view, U.S. spot XRP ETFs reported inflows of approximately $11.3 million from October 5 to 9, extending their inflow streak to 13 weeks. Notably, Bitwise contributed $10.55 million, while Franklin Templeton’s XRPZ attracted $4.1 million amid some fluctuations, as Canary Capital’s XRPC saw outflows of $3.34 million.
On-chain data from Santiment indicates that exchange inflows spiked between September 10 and September 27 but have since declined, suggesting that holders are hesitating to send tokens to exchanges for selling.
Crypto analyst Ali Charts has taken a cautious stance, observing that XRP is currently trading within a parallel channel on the hourly chart. He pointed out that the price could still drop towards the lower boundary around $1.25 before any meaningful rebound occurs.
XRP REBOUND INCOMING!? $XRP appears to be trading inside a parallel channel on the hourly chart.
This structure suggests XRP could still drop toward the lower boundary around $1.25 before seeing a meaningful rebound.
That’s the level I’m watching for a potential buying… pic.twitter.com/Et9Q11p08w
— Ali Charts (@alicharts) October 15, 2026
Ali indicated that $1.25 is the key level to watch for a potential buying opportunity, with a bounce potentially sending XRP to the midpoint of the channel at $1.42, or even to the upper boundary near $1.60.
XRP Chart Analysis
On the daily chart, XRP has shown resilience after dipping below the crucial $1.32 mark, a level that has served as significant support for several weeks. Strong buying volume emerged at this level, suggesting that if XRP maintains its position above it, the recent pullback may have found a floor.
Looking at the four-hour chart, the relative strength index (RSI) sits at 32.82, nearing oversold territory, while the MACD line remains beneath its signal line. For a confirmed trend reversal, XRP needs to break above $1.45, with the next resistance level to observe being $1.45. Conversely, a four-hour close below $1.30 could expose the price to $1.25.
