XRP Price Prediction as Short Interest Builds Ahead of US Inflation Data

Ripple (XRP) has dropped to its lowest price in a week ahead of the release of the US CPI data on September 11. Data from CoinGlass also shows an influx in the number of traders who are opening short positions, as they bet that the price could move lower.

XRP price trades at $1.38 today, September 10, after dropping by 4% in 24 hours. The drop mirrors the downtrend across the broader crypto market, with all of the top ten largest cryptos by market cap edging lower.

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XRP Shorts Positions Surge as Markets Price In US CPI, Rate Hikes

Data from CoinGlass shows that XRP’s funding rate has dropped to -0.0094%. This is the lowest funding rate reading since June 28.

This funding rate reading shows that bears are dominating the market as short sellers pay long traders to keep their futures positions open.

The long/short reading for XRP has also dropped to 0.0089, suggesting that there are also more short-selling accounts than long buying accounts.

This bearish positioning on XRP price comes ahead of the release of the US CPI data on September 11, with analysts expecting that core inflation will increase 0.22% month-over-month.

Wall Street is also betting on an increase in the headline CPI to 0.39% month-over-month because of the Middle East conflict. However, they also expect the core CPI to ease to 2.4% year-over-year.

As CoinGape reported earlier, Fed Governor Chris Waller expects the August inflation data to guide the Fed’s decision on whether to hike or trim interest rates.

Data from CoinGape prediction markets shows that 71% of investors are betting that the Fed will increase interest rates in 2026.

The European Central Bank (ECB) is also expected to hike rates by 25 basis points at its policy meeting today, September 10.

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Ripple ETFs Extend Inflows Despite Price Weakness

Data from SoSoValue shows that there were $12.29 million in inflows to XRP ETFs on September 9. This marked the highest inflows to these ETFs since September 1.

XRP also had the second-highest inflows after Ethereum (ETH), which reported $34.75 million in inflows. Unlike XRP and ETH, Bitcoin (BTC) recorded outflows of $120.24 million.

The inflows into Ripple ETFs suggest that institutional investors are shrugging off the short-term price weakness caused by inflation pressure and rate hikes.

Still, the spot market shows a different picture after the XRP Volume Z-Score on Binance dropped to -0.09, per data from CryptoQuant.

Analyst Arab Chain notes that this drop in the Z-score suggests that XRP price could be consolidating as the market awaits a new catalyst.

“If the indicator remains near zero or slips into negative territory, it could signal subdued activity and weakening short-term price momentum,” The analyst said.

Still, a previous CoinGape XRP price analysis noted that whale activity around XRP is rising and matching the demand that is coming from institutions.

XRP Price Slips Below Crucial Support as Bears Target $1.33

XRP price is testing the support at $1.38. Ripple had already dropped below this support at the time of writing after an increase in the selling pressure.

If XRP closes below this support, it could move to the September 2 low of $1.33.

The CMF reading of -0.09 on the four-hour chart suggests that the selling pressure is outpacing the buying pressure.

The RSI reading of 40 also shows that the momentum is favoring bears and the price could edge lower.

However, if buying pressure returns as inflation pressures ease, XRP price could move to the resistance zone between $1.46 and $1.47.