XRP plunged after the U.S. September consumer price index (CPI) came in above market expectations.

On Oct. 14, The Crypto Basic, a blockchain outlet, reported that XRP faced immediate selling pressure after September CPI data released by the U.S. Bureau of Labor Statistics (BLS).

The data was taken as a sign that disinflation momentum is weakening. Consumer prices rose 0.6 percent from the previous month, and the annual increase accelerated to 3.7 percent in September from 3.4 percent in August. Rising energy prices pushed inflation higher, with gasoline prices jumping 9.1 percent and overall energy prices up 5.2 percent.

Core CPI excluding food and energy rose 0.3 percent on the month, above the forecast of 0.2 percent. On an annual basis, core inflation rose to 2.6 percent from 2.4 percent, also above the 2.5 percent estimate. Real wages fell 0.5 percent.

Markets reacted quickly. Bitcoin slid to $82,765 from $83,794 within 15 minutes of the release. XRP also fell 1.63 percent to an intraday low of $1.3574 from $1.38 in less than 15 minutes, then attempted a limited rebound. Across the broader crypto market, about $40 billion in market capitalisation was wiped out within 45 minutes.

Rate expectations also shifted. Ahead of the Federal Reserve's Oct. 27-28 meeting, markets began to price in the possibility of an additional rate hike again. Even before the CPI release, the possibility of further tightening had already been priced in at as much as 64 percent.

In XRP's near-term move, $1.3624 emerged as a key pivot. XRP fell below that support level during the drop. Buyers later tried to reclaim $1.3624, but sellers turned the former support area into resistance. The 15-minute relative strength index (RSI) also fell to 37.27 from 63.35 in less than 30 minutes, showing the intensity of the decline.

Short-term technical conditions also weakened. After sliding to $1.3574, XRP fell further and is now holding above $1.33. As the $1.3624 support that absorbed selling pressure throughout the session broke, pressure has increased across the entire $1.35 to $1.38 range that the market was watching.

Still, it is too early to say XRP's medium-term trend has fully reversed. XRP rose 48 percent in the third quarter for its strongest quarterly performance in the past four years, and attention has been on whether October will extend that rise. But it remains 59 percent below the all-time high (ATH) of $3.65 recorded in July 2025, and its year-to-date return is down 17.6 percent.

In this environment, the market is watching two things at the same time: whether inflation worries will further weigh on risk-asset sentiment, or whether XRP can hold the support zone around $1.35 and build a base for a rebound. If losses continue below the $1.35 to $1.38 range, the recovery trend could weaken further. If buyers return, XRP could again attempt to regain $1.36.