XRP remains the best-performing cryptocurrency among the market’s five largest assets, rising 36% since its late-August rally, but renewed macroeconomic uncertainty and selling near $1.40 have constrained its recovery. U.S. inflation increased 3.4% year over year in August, broadly matching expectations, while month-over-month inflation exceeded forecasts by 10 basis points and lifted the probability of a September interest-rate hike to 87%. Crypto prices initially rallied, but gains faded over the weekend as XRP retested $1.31 support on Sunday before rebounding to $1.37. U.S. spot XRP ETFs have recorded approximately $32 million in net inflows this month, according to SoSoValue data. If the current daily pace continues, inflows could approach $90 million by the end of September, 41% below August’s total but above June and July levels. The figures point to continued institutional demand, although momentum has weakened from the previous month. Ripple USD, Ripple’s native stablecoin (a cryptocurrency designed to maintain a stable value), saw its market capitalization rise from $1.6 billion to $2.4 billion in one month, a 50% increase. Ripple also secured $275 million last month to expand its prime brokerage operations, which may have contributed to greater RLUSD activity and trading volumes. Rising stablecoin adoption could indicate increased network usage and eventually support XRP demand as Ripple pursues its goal of becoming a leading blockchain provider for cross-border payments. Technically, XRP is forming a bull flag after the late-August rally, with sellers defending $1.40 during consolidation. A rebound from approximately $1.32 suggests the former resistance level may be acting as support, while the Relative Strength Index stands at 54, indicating modestly bullish momentum without overbought conditions. Holding above $1.32 would preserve the constructive outlook, while a confirmed break above the bull flag and $1.40 could signal a resumption of the broader uptrend. The flag’s downward slope shows that sellers currently control the consolidation, leaving XRP reliant on another bullish catalyst, such as progress on U.S. crypto market-structure legislation or stronger institutional inflows, to clear resistance and target higher levels.