The Federal Reserve is walking a tightrope between fighting inflation and supporting a weakening job market. Jerome Powell made it clear that the Fed only has one tool—interest rates—but two conflicting goals. Rate cuts help employment but risk inflation, while holding rates higher cools prices but hurts growth. This policy tug-of-war is spilling into financial markets, and XRP price is no exception.
Why Fed Policy Shapes XRP News and Market Sentiment?
Lower interest rates usually drive liquidity toward risk assets like cryptocurrencies. Jerome Powell cautious tone, however, shows the Fed isn’t fully committed to a dovish path. For traders watching XRP news, this matters because looser monetary policy often lifts prices, but a hawkish shift could stall momentum. That tension is now the backdrop for the latest XRP news cycle and price action.
Powell’s remarks tie directly into the mechanics of the federal funds rate. By admitting that the Fed is pulled in two directions—cutting rates to support jobs while still facing inflation above target—he’s essentially signaling uncertainty about how much liquidity the Fed is willing to inject.
If the Fed continues cutting, banks will have cheaper access to reserves, liquidity will rise, and XRP could see stronger inflows as investors chase higher-risk returns. But Powell also warned that strategy could reverse if inflation proves sticky, meaning the Fed might halt cuts or even push rates back up, draining liquidity and pressuring XRP’s price lower.
This push-pull dynamic mirrors XRP’s current chart structure: stuck below resistance at 3.00, waiting for clearer direction from monetary policy to decide whether the next move is a breakout or a deeper slide.
Powell’s comments highlight that the Fed is no longer operating on a clear roadmap but reacting to incoming data, which injects uncertainty into all risk assets, including XRP. The mention of tariffs as a temporary inflation driver suggests the Fed hopes external pressures will fade, but if they persist, the compromise of cutting rates amid high inflation could backfire.
For XRP news, this means short-term volatility will be highly sensitive to each economic release, with inflation prints and labor data directly shaping market expectations for the Fed’s next move. That uncertainty could keep XRP price locked in a choppy range until a decisive policy direction emerges.
XRP Price Prediction: XRP Price Technical Breakdown
XRP/USD Daily chart- TradingViewOn the daily chart, XRP price trades near 2.84, slipping below the 3.00 pivot. Bollinger Bands are widening, showing increasing volatility, with price stuck near the lower band. Heikin Ashi candles reveal continued selling pressure over the past week.
Resistance sits at 3.00 and 3.20, while support rests at 2.70 (S1) and 2.55 (S2). Losing the mid-band (around 2.97) signals that sellers have the upper hand unless bulls quickly reclaim the 3.00 zone.
Macro Pressure Meets XRP Price Structure
Powell described the Fed’s situation as a compromise between two competing goals. XRP news faces a similar crossroad. A sustained dovish cycle could spark a breakout toward 3.20 and beyond, while sticky inflation and hawkish hesitation could push the price toward 2.55 or even 2.30.
XRP News: Key Levels to Track
Resistance: 3.00 and 3.20Support: 2.70, 2.55, and deeper risk at 2.30Volatility watch: If the Bollinger Bands tighten, expect an explosive moveWhat's XRP Price Prediction Now?
Short term, $XRP looks heavy. Below 3.00, sellers may drive it toward 2.70 or 2.55. Medium term, much depends on Fed signals. If rate cuts continue to defend the job market, liquidity could push XRP price toward 3.20–3.50. Until then, the likeliest outcome is consolidation between 2.55 and 3.00, with macroeconomic headlines steering the next decisive move.
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