XRP price is hovering near $1.35 as markets closely watch the January U.S. Consumer Price Index (CPI) report due later today.

Economists expect headline inflation to tick slightly higher on a month-over-month basis. Annual inflation is projected to land in the 2.5% range. Core CPI, which strips out food and energy, is also expected to show sticky price pressures.

If CPI comes in hotter than expected, it could reduce the chances of near-term Federal Reserve rate cuts. That would likely strengthen the U.S. dollar and weigh on risk assets, including cryptocurrencies like the Ripple token (XRP).

A softer-than-expected print, however, could boost expectations of monetary easing and trigger a relief rally across crypto markets.

XRP price prediction and key levels

XRP is currently trading around $1.35, down roughly 0.6% on the day, according to the daily price chart.

The chart shows a clear downtrend since early January. XRP failed to hold above the $2.20–$2.30 region and has printed a series of lower highs and lower lows. The price is trading well below the 50-day Simple Moving Average (SMA), which sits near $1.84, signaling continued bearish momentum.

The recent sharp sell-off toward the $1.20 zone was followed by a brief rebound, but upside momentum has faded. Candles are now compressing near the $1.35 level, suggesting indecision ahead of the CPI release.

The Chaikin Money Flow indicator is currently around -0.12, remaining in negative territory. This indicates capital outflows and weak buying pressure, reinforcing the bearish bias.

For the XRP price, immediate support lies near $1.30, followed by the recent swing low around $1.20. A break below $1.20 could open the door toward the psychological $1.00 level.

On the upside, initial resistance sits near $1.40, with stronger resistance at the 50-day SMA around $1.84.

A hotter CPI reading could push XRP below $1.30 and retest $1.20. A softer inflation print may spark a rebound toward $1.40 and potentially $1.60 in the short term.