The XRP token increased by more than 4% on February 14, reaching its highest level in over a week. This rebound, which exceeds 30% from its year-to-date low, aligns with broader cryptocurrency market gains following positive US inflation data. The surge also ties to growth in Ripple's USD stablecoin after its Binance listing.
On February 14, XRP's price climbed over 4%, hitting a weekly high after rebounding more than 30% from its year-to-date low of $1.1145. This movement mirrored the wider cryptocurrency market, where Bitcoin reached $70,000 and coins like Zcash, Morpho, and Pippin rose over 20%. The total market capitalization grew by more than 3.4%, surpassing $2.38 trillion.
The rally gained momentum after the release of US inflation figures, which showed headline consumer inflation at 2.4% for January, down from 2.6% in December. Core inflation, excluding food and energy, held steady at 2.5%. These results suggest that tariffs implemented under President Trump have not significantly affected inflation levels. Market participants viewed the data as increasing the chances of additional interest rate cuts by the Federal Reserve this year.
Contributing to XRP's performance was the expansion of Ripple's USD stablecoin, RLUSD, which now holds over $1.5 billion in assets following its listing on Binance. Usage of the stablecoin continues to rise. Ripple Labs is developing new features, including a permissioned decentralized exchange (DEX) on the XRP Ledger. This DEX will function similarly to platforms like Uniswap and PancakeSwap but with controls on who can place or accept offers, making it suitable for institutional users.
From a technical perspective, XRP bottomed at $1.1110 earlier in the month and has since recovered to $1.4700. However, it stays below the key support level of $1.807, as well as the 50-day and 100-day exponential moving averages. The token also trades under the Supertrend indicator, indicating potential for the rebound to be a temporary dead-cat bounce before resuming a downtrend. A sustained recovery would require breaking above the 50-day moving average and $1.807 resistance.
