Expectations of higher US interest rates keep XRP demand weak amid ongoing market sell-off

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XRP weakens on US inflation data and Fed rate hike concerns

Highlights

US inflation rose modestly in November, increasing expectations that the Federal Reserve will raise interest rates in December.
Anticipation of higher rates has reduced demand for risk assets, adding pressure to digital assets such as XRP.
XRP trades below key moving averages with strong sell signals from momentum indicators, putting downside risk in focus unless policy outlook shifts.

US inflation report and Fed rate hike expectations pressure XRP

According to FXStreet, the US Consumer Price Index released on November 11, 2026, showed a mild increase in inflation. This report led to broad expectations that the Federal Reserve will raise interest rates in December, which has weakened demand for digital assets such as XRP and contributed to ongoing sell-offs.

Expectations of higher US interest rates tend to push investors away from risk assets, including cryptocurrencies like XRP, by making traditional interest-bearing assets more attractive and tightening overall liquidity. The resulting decrease in demand has accelerated the pressure on XRP's market activity.

With the Federal Reserve's next policy steps still uncertain, traders remain focused on future inflation data and central bank signals as they assess potential shifts in demand for digital assets.

Macro-driven weakness keeps XRP below major 4H averages

On the 4-hour chart, XRP continues to trade below its key simple moving averages, including the SMA50 and SMA200. This confirms the persistent weakness seen in the price action after the latest macroeconomic data.

Both MACD and ADX point to a strong sell bias, indicating negative momentum in the short term. The 4H Ichimoku Kijun level now serves as resistance, while price has failed to reclaim any of the referenced moving averages.

Fed policy signals and inflation data to define next move

XRP could face further downside if the outlook for US interest rate hikes strengthens. A recovery above the resistance zone around $1.06 would be needed to signal a possible change in momentum. Until fresh macro data or policy guidance shifts the landscape, risk remains to the downside.

Anton Kharitonov, expert at Traders Union, sees XRP under strong pressure as sellers keep control and US rate hike risks weigh on sentiment. He notes that fundamentals and technicals align to support a defensive approach, with price stuck below key moving averages and momentum indicators pointing to further weakness. Kharitonov believes the uncertainty around the Federal Reserve’s policy decision is maintaining a negative backdrop for risk assets like XRP. "Until we see clear signs of recovery above $1.06 or a shift in macro data, I remain cautious and expect downside risk to persist."

Previously it was reported that XRP faced ongoing selling pressure as persistent inflation and expectations of tighter U.S. monetary policy weighed on sentiment. The latest developments confirm this bearish view, with traders watching for upcoming inflation data and Federal Reserve signals to determine whether risk appetite for digital assets like XRP could recover.

Source of Data: XRP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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