Analysis: The crypto market remains cautious ahead of the U.S. April CPI release, with XRP and SOL facing resistance at key levels again

Mars Finance News, according to CoinDesk, ahead of the release of the U.S. April CPI data, the crypto market’s rally has temporarily stalled. Bitcoin has recently continued to trade in a range of $80,000 to $82,000, and has failed to effectively break out since last Wednesday. The market believes that although capital inflows still point to a possible subsequent breakout, inflation and macro risks are suppressing risk appetite. The United States will release the April Consumer Price Index (CPI) at 8:30 PM Beijing time tonight. FactSet data shows that the market expects April CPI to rise to 3.7% year over year, up from March’s 3.3%. If the forecast is realized, it would mark the largest increase since January 2024, and would be clearly higher than the 2.7% average level over the past 12 months. Core CPI is expected to rise to 2.7% year over year, higher than the prior reading of 2.6%. Analysts are concerned that, amid high oil prices and Trump’s comment that the U.S.-Iran ceasefire is “extremely fragile,” if inflation data comes in above expectations, it could further trigger risk-off sentiment and weigh on the performance of risk assets. FXTM’s Head of Market Research, Lukman Otunuga, said the market is currently entering a sensitive phase in which geopolitical risks, inflation risks, and central bank expectations are intertwined. High oil prices, uncertainty in Iran’s situation, and key U.S. economic data could drive increased volatility in commodities, exchange rates, and global stock markets. Besides macro factors, XRP and SOL are also once again approaching key supply zones. XRP briefly tested $1.5 today, but the level has failed to be broken through multiple times since February this year; SOL is again nearing the resistance level around $97. Meanwhile, institutional capital interest in related assets is heating up. The U.S. spot XRP ETF recorded a net inflow of $25.8 million on Monday, the highest level since January 5. Bitcoin and Solana ETFs also maintained net inflows, while Ethereum ETFs saw a net outflow of $16.9 million.