Market Rotation Accelerates as XRP Reclaims $2.13 After CPI Data

The cryptocurrency market is witnessing a sharp rotation as XRP surged to $2.13, capitalizing on renewed investor confidence following the latest U.S. Consumer Price Index (CPI) report. The move highlights a broader shift in market structure, where traders are rotating capital from Bitcoin into select high-liquidity altcoins amid improving macroeconomic conditions.

XRP’s rally comes at a time when inflation data confirmed easing price pressures, reinforcing expectations that the Federal Reserve may maintain its current interest-rate stance longer than previously feared. This environment has historically favored risk-on assets, including digital currencies.

CPI Data Triggers Risk-On Momentum Across Crypto Markets

The most recent CPI print showed inflation rising at a slower-than-expected pace, with core inflation holding steady near multi-month lows. This data point reduced market anxiety around aggressive monetary tightening and triggered a noticeable uptick in risk exposure.

Within 24 hours of the CPI release, total cryptocurrency market capitalization increased by approximately 2.8%, adding nearly $55 billion in value. Bitcoin climbed modestly, but capital rotation favored altcoins with strong liquidity and established market infrastructure placing XRP firmly in focus.

XRP Price Action Shows Strength Above Key Technical Levels

XRP’s move to $2.13 represents a 6.4% weekly gain, outperforming both Bitcoin and Ethereum over the same period. Trading volume surged by nearly 32% day-over-day, signaling increased participation from both retail and institutional traders.

From a technical standpoint, XRP successfully reclaimed its 50-day and 100-day moving averages, often viewed as critical trend confirmation levels. Analysts note that holding above the psychological $2.00 support zone significantly improves the probability of sustained upside momentum.

Additionally, on-chain metrics show a 14% reduction in exchange-held XRP balances over the past 30 days, suggesting that investors are moving assets into long-term storage rather than preparing to sell.

Market Rotation Signals Shift From Bitcoin Dominance

Bitcoin dominance has slipped from 51.2% to 48.9% over the past two weeks, a notable decline that aligns with historical altcoin rotation phases. During previous cycles, similar drops in dominance preceded short-term rallies in large-cap altcoins like XRP.

This rotation is not speculative across the board. Data indicates that capital is flowing selectively into assets with regulatory clarity, strong liquidity profiles, and institutional accessibility. XRP stands out due to its deep order books, cross-border payment use cases, and increasing integration into structured investment products.

Institutional Activity and Liquidity Trends Support XRP Strength

Institutional-grade demand for XRP continues to grow. Over the last quarter, XRP-related investment products recorded an estimated $620 million in net inflows, accounting for nearly 18% of total altcoin fund allocations.

Liquidity metrics also remain favorable. XRP’s average daily trading volume now exceeds $4.1 billion, placing it consistently among the top five most traded digital assets globally. Higher liquidity reduces volatility risk and makes the asset more attractive to large-scale investors.

What the Data Suggests for XRP’s Near-Term Outlook

From an analytical perspective, XRP’s current price structure suggests cautious optimism. If the token maintains support above $2.00, models project a potential test of the $2.25–$2.35 resistance range in the near term. Failure to hold that level, however, could trigger a short-term consolidation phase.

Macro conditions remain the primary variable. Upcoming economic data, Federal Reserve commentary, and broader liquidity conditions will continue to dictate capital flows across crypto markets.