XRP Today News: Seven consecutive days of decline end, CPI and crypto legislation breakthroughs boost gains

XRP ends its 7-day decline, with a temporary report of $2.1644 on January 14. The stable US CPI at 2.7% supports rate cuts, boosting XRP prices. The Senate released a 278-page market structure bill text, scheduled for voting on the 15th, clarifying that XRP and other ETF assets will be treated equally with BTC and ETH. Breaking through the 50-day moving average, holding above $2, with a medium-term target of $3 and a long-term target of $3.66.

US CPI Data Sparks XRP Rebound

On January 12, as market expectations of a March rate cut by the Federal Reserve weakened, the US December Consumer Price Index (CPI) report drew significant attention. In December, overall inflation and core inflation remained steady at 2.7% and 2.6%, respectively, supporting a more dovish rate path by the Fed. The overall inflation rate in November dropped from 3% to 2.7%, with analysts attributing the softness to US government shutdown and decreased consumer spending.

The December report indicates easing inflation, providing support for the Fed to cut rates. After the inflation data was released, XRP price rose from $2.0659 to a intraday high of $2.1823, an increase of about 5.6% for the day. This sensitive reaction to macro data shows XRP’s correlation with traditional risk assets is strengthening; when markets expect an improved interest rate environment, funds flow into risk assets including cryptocurrencies.

From the Fed’s policy logic, cooling inflation is a prerequisite for rate cuts. If inflation continues to stay in the moderate range of 2-3%, the probability of the Fed cutting rates in the first half of 2026 will significantly increase. Rate cuts will reduce the opportunity cost of holding cash, driving funds from money markets into stocks and cryptocurrencies. For XRP, this macro environment improvement provides a crucial tailwind.

However, it must be noted that XRP’s reaction to inflation data is not isolated. Bitcoin and Ethereum also rose at the same time, indicating a collective response of the entire crypto market to macroeconomic favorable signals. XRP’s uniqueness lies in its additional sensitivity to regulatory developments, which can further boost its momentum on top of positive inflation data.

Historical Breakthrough of the Market Structure Bill

While US inflation data increased demand for XRP, the progress of the market structure bill may have a greater impact on the token’s price trend. The US Senate Banking Committee released a 278-page bipartisan text on Tuesday, January 13, paving the way for a vote scheduled for Thursday, January 15.

Three Major Benefits of the Market Structure Bill for XRP

Equal Treatment Clause: Major assets like XRP, SOL, LTC ETFs will enjoy the same treatment as BTC and ETH from the outset, without additional disclosures.

Non-Security Confirmation: Following Judge Torres’s ruling and SEC litigation resolution, further legitimizing XRP as a non-security.

Bipartisan Support: Expected support from 2-4 Democratic Senators, indicating cross-party consensus.

Accelerated Process: The Senate Agriculture Committee released the text on January 21, with a revised draft on January 27.

US crypto program host Eleanor Terrett shared the latest from Capitol Hill, stating that if a token is listed on a national securities exchange as of January 1 and registered under Section 6 of the Securities Act, it will not need to submit disclosure information like other tokens. In other words, under this bill, XRP, SOL, LTC, HBAR, DOGE, and LINK will enjoy the same treatment as BTC and ETH from the start.

This clause is extremely significant. Previously, XRP was in a legal gray area regarding whether it was a security, which hindered large-scale institutional investment. Now, with ETF existence and legislative clarity, XRP gains the same legal status as Bitcoin and Ethereum. This certainty could unlock substantial institutional funds that were previously unable to allocate XRP due to compliance concerns.

Patrick J. Witt, Executive Director of the Digital Asset Advisory Committee, believes that 2-4 Democratic Senators will vote in favor of the Market Structure Bill. Witt added, “So, I think bipartisan support for this proposal is a very good signal, and as we said, it’s about momentum. A bipartisan vote will lay a very favorable foundation for our full chamber vote.”

XRP remains highly sensitive to developments in cryptocurrency legislation. On July 17, after the US House of Representatives submitted the Market Structure Bill to the Senate for review, XRP’s price increased by 14.69%. Subsequently, after the Senate Banking Committee announced a rate hike on January 15, the token’s price rose from $1.8746 on December 31 to an eight-week high of $2.4151 on January 6.

Technical Outlook and Target Price Roadmap

(Source: Trading View)

On January 13, XRP rose 5.43%, reversing the previous day’s 0.93% decline, closing at $2.1644. The token outperformed the overall crypto market, which gained 4.62%. The price rebound pushed XRP above the 50-day moving average but still below the 200-day moving average. Moving averages indicate short-term bullishness but long-term bearishness. Nonetheless, fundamentals remain bullish and dominant.

From the daily chart, if the price breaks above $2.2, the 200-day moving average at $2.3296 will come into play. If the price continues to break above the 200-day MA, it suggests a potential trend reversal, with resistance at $2.5. Crucially, breaking above the EMA will solidify a bullish medium-term outlook and a longer-term (8-12 weeks) target of $3.66.

Strong inflows into XRP spot ETF funds, increased XRP utility, and legislative progress in crypto law all confirm a bullish short-term (1-4 weeks) outlook with a target of $2.5. Mid-term (4-8 weeks) target at $3.0, and long-term (8-12 weeks) target at $3.66. Looking ahead over the next 12 weeks, these factors could push XRP past its all-time high of $3.66, confirming a target of $5 within the next 6 to 12 months.