Ripple (XRP) fell 2.76% to trade at $1.40 on the 5th (local time). Overseas crypto media outlet CoinGape reported that strong U.S. employment indicators increased the possibility of the Federal Reserve (Fed) raising interest rates, putting downward pressure on cryptocurrency prices.

The decline came as Ripple CEO Brad Garlinghouse explained the background behind the Bank for International Settlements (BIS) testing the XRP Ledger (XRPL) for data verification.

BIS Uses XRPL in Prototype for Verifying Authenticity of Data

According to CoinGape, the BIS stated in a report released on the 2nd (local time) that it had created a prototype to verify the authenticity of official statistics. The prototype converts statistical files into encrypted fingerprints through the XRP Ledger, and recipients can verify their authenticity by comparing them with public records.

CEO Garlinghouse maintains that it is not surprising the BIS tested the XRPL. CoinGape reported that the XRPL's low cost and high processing capacity were cited as reasons. Garlinghouse said, "Is it surprising that the BIS is testing the XRPL? It has low fees, fast settlement, and a proven track record."

According to XRPL data cited by CoinGape, as of the time of writing, the network's average transaction fee is 0.000088 XRP with a processing speed of 24.91 transactions per second.

The BIS's XRPL test came as Ripple voted in favor of the XRPL 3.3.0 upgrade amendment. According to CoinGape, the upgrade's mainnet implementation is scheduled for the 11th (local time).

XRP ETFs See Net Inflows for 8 Consecutive Weeks

According to SOSOValue data cited by CoinGape, XRP exchange-traded funds (ETFs) have recorded net inflows for eight consecutive weeks. These products have posted net inflows every week since July 17 (local time). CoinGape reported that this trend demonstrates strong institutional demand.

Amid continued ETF inflows, Ryan Rasmussen, head of research at Bitwise, recently said that XRP drew the most questions during a presentation his firm held for 400 asset managers.

According to CoinGape, the five XRP ETFs trading in the U.S. have combined net assets of $1.48 billion, which accounts for 1.69% of XRP's total market capitalization of $88.44 billion.

Pushed Back at $1.45 Resistance... Focus on $1.35 Support

CoinGape analyzed that XRP's price was pushed back at the $1.45 resistance level that day. Following the strong U.S. employment data, the probability of a Fed rate hike rose to 51% in CoinGape's prediction market data, affecting the price.

According to CoinGape's price analysis, XRP is currently testing the $1.35 support level, where the 200-day exponential moving average (EMA) sits. CoinGape forecast that if the price falls below this support, it could signal a shift in the long-term trend to a downtrend, with a possibility of moving down to the psychological support level of $1.20.

On the other hand, XRP is holding above $1.40, which was presented as the resistance line of a bullish flag pattern. CoinGape analyzed that if buying momentum revives and the price begins an upward move, it could retest $1.69, recorded on August 22 (local time).

In chart analysis, the relative strength index (RSI) stands at 60. CoinGape interpreted this as a signal that bullish momentum still dominates, projecting that XRP could close above the $1.40 resistance level.

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