XRP Drops to $1.31 Range on Fed Rate Hike Fears While ETF Inflows Hit $1.7 Billion
XRP experienced a sharp sell-off in early October 2026, dropping from a recent peak of $1.50 to trade around $1.31 to $1.33. The retreat was triggered by higher-than-expected U.S. inflation figures, which increased expectations of a Federal Reserve interest rate hike to 64% by the end of the month. As liquidity shifted toward defensive government bonds, retail traders rushed to exit positions.
Despite retail selling pressure, institutional capital has actively accumulated the token. Spot XRP exchange-traded funds recorded $1.7 billion in net inflows, boosted by new corporate developments. These include Evernorth Holdings Inc. (XRPN) listing on the Nasdaq, Standard Chartered offering custody services for Ripple's RLUSD stablecoin, and broker DriveWealth integrating the token into its network. Historically, October yields negative median returns for the asset, while November and December have averaged gains of 80% and 63%.
Investors are looking toward late October for potential catalysts. The Federal Reserve's upcoming interest rate decision and Ripple's annual Swell conference, beginning October 27 in New York, are expected to provide direction for whether the token can reverse its current trend heading into the final months of the year.
Key points
- XRP fell from $1.50 to the $1.31–$1.33 range after hotter-than-expected U.S. inflation data raised fears of a Federal Reserve rate hike.
- Spot XRP ETFs absorbed $1.7 billion in net inflows despite retail liquidations during the October downturn.
- Corporate expansion continued as Evernorth Holdings Inc. listed on Nasdaq and Standard Chartered added custody for Ripple's RLUSD stablecoin.
- Major upcoming events include the Fed's rate decision and Ripple's Swell conference starting October 27 in New York.
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How we writeDisclaimerQuestions and answers
Why did the XRP price drop in October 2026?
XRP fell after higher-than-expected U.S. inflation data raised expectations of a Federal Reserve interest rate hike, leading retail investors to sell crypto assets in favor of defensive government bonds.
Are institutional investors still buying XRP?
Yes, spot XRP ETFs registered $1.7 billion in net inflows despite the price pullback, supported by new listings, broker integrations, and institutional custody expansion.
What upcoming events could impact XRP at the end of October?
Key catalysts include the Federal Reserve's interest rate decision at the end of the month and Ripple's annual Swell conference in New York, which begins on October 27.