XRP Rallies Over 4% as Inflation Data Sparks Crypto Market Recovery

XRP experienced a notable surge on February 14, climbing more than 4% to reach its highest price point in over a week. The digital asset has now recovered by over 30% from its year-to-date low of $1.1145, signaling renewed investor confidence amid improving macroeconomic conditions.

Broader Crypto Market Gains Momentum

The XRP rally occurred in tandem with widespread gains across the cryptocurrency market. Bitcoin (BTC) surged to $70,000, while several other digital assets including Zcash, Morpho, and Pippin posted impressive gains exceeding 20%. The total cryptocurrency market capitalization increased by more than 3.4%, surpassing $2.38 trillion.

Favorable Inflation Data Fuels Optimism

The upward momentum in XRP and the broader crypto market coincided with encouraging inflation data released by the United States. The report revealed that headline consumer inflation declined to 2.4% in January, down from December's 2.6%. Core inflation, which excludes volatile food and energy prices, remained steady at 2.5%.

These figures have bolstered investor expectations that the Federal Reserve may implement additional interest rate cuts throughout the year. Notably, the data suggests that tariffs introduced under the Trump administration have not significantly impacted inflation levels.

Ripple USD Stablecoin Gains Traction

XRP's price appreciation also reflects growing adoption of the Ripple USD (RLUSD) stablecoin, which has experienced substantial growth following its recent listing on Binance. The stablecoin now holds over $1.5 billion in assets, with usage continuing to expand across the ecosystem.

Ripple Labs is actively developing new features designed to increase utilization of both XRP and RLUSD. Among these initiatives is a permissioned decentralized exchange (DEX) feature currently in development.

Permissioned DEX Development Underway

The planned permissioned DEX shares similarities with popular platforms such as Uniswap and PancakeSwap, with one key distinction: it will control who can place and accept offers. This feature is specifically designed to serve institutional participants operating on the XRP Ledger, potentially opening new use cases for enterprise adoption.

Technical Analysis Reveals Mixed Signals

From a technical perspective, XRP bottomed at $1.1110 earlier this month before rebounding to $1.4700. This recovery pattern has largely mirrored movements in Bitcoin and other alternative cryptocurrencies.

However, the token continues trading below the significant support level of $1.807, which previously served as a floor in April, October, November, and December of last year. XRP also remains beneath both the 50-day and 100-day Exponential Moving Averages.

Additionally, the asset has stayed below the Supertrend indicator. These technical factors suggest that while XRP may have established a bottom, there remains a risk that the current rally could represent a dead-cat bounce—a brief recovery within a longer-term downtrend, also known as a bull trap.

Technical analysts indicate that a sustained XRP recovery will be confirmed only when the price moves above the 50-day moving average and breaks through the resistance level at $1.807.

Coinasity's Take

XRP's recent performance demonstrates the cryptocurrency's sensitivity to both macroeconomic developments and ecosystem-specific growth drivers. While the favorable inflation data and expanding RLUSD adoption provide fundamental support, traders should remain cautious given the technical resistance levels ahead. The permissioned DEX initiative represents a strategic move toward institutional adoption, potentially differentiating XRP in an increasingly competitive landscape. However, confirmation of a genuine trend reversal requires breaking key technical barriers before declaring the correction over.