Ripple’s XRP Breaks Out as Fed Cuts and Banks Fuel Bullish Momentum

XRP, the cryptocurrency developed by Ripple, has climbed 4.15% to $3.02 as of September 9, 2025, marking its third consecutive day of gains and pushing it back above the $3.00 psychological level. This rally is attributed to a combination of factors, including the heightened probability of a Federal Reserve (Fed) rate cut at its September 16–17 meeting, which now stands at 99%. Market analysts suggest that a rate cut—potentially as large as 50 basis points—would weaken the U.S. dollar and drive demand for riskier assets, benefiting XRP and the broader crypto market.

Ripple also announced an expanded partnership with BBVA, a Spanish banking giant, to provide digital asset custody technology for retail clients in Spain. This expands on existing agreements with banks in Switzerland and Turkey. The partnership enables BBVA to offer end-to-end custody services for Bitcoin and Ethereum under the Markets in Crypto Assets (MiCA) regulatory framework. Cassie Craddock, Ripple's managing director for Europe, noted that the regulatory clarity provided by MiCA has emboldened banks to offer digital assets to meet customer demand.

From a technical standpoint, XRP has reclaimed the 50-day exponential moving average (EMA) and broken through the $2.96–$3.00 resistance zone, supported by the 38.2% Fibonacci retracement level. This breakout indicates potential for testing August highs around $3.30 and potentially reaching the year's peak of $3.60. Trading volume surged to 159.63 million, nearly three times the average, confirming institutional participation in the move. The RSI and MACD indicators both suggest bullish momentum, with the latter approaching a crossover that signals accumulation patterns.

Looking further ahead, analysts highlight the potential for XRP to break out of a three-month flag formation. If the price continues upward, it could target $4.70, representing a 55% increase from current levels. Paul Howard from Wincent emphasized that XRP is currently within 18% of its all-time high and is outperforming Bitcoin due to its volatility and broader institutional adoption in banking and cross-border payment services. Whale accumulation has also continued despite increased exchange inflows, with large holders acquiring 10 million XRP in a 15-minute window and over 340 million tokens in the last weeks.

The broader crypto market is also showing signs of institutional strength. Bitcoin ETFs have seen record inflows in early September 2025, with BlackRock's iShares Bitcoin Trust and Fidelity's FBTC absorbing significant capital. Bitcoin's illiquid supply has hit a record 14.3 million BTC, with over 70% of coins now in wallets with little transaction history, suggesting strong long-term confidence. This trend supports the narrative that institutional demand is a tailwind for XRP.

Traders are monitoring several key levels, including the $2.99–$3.00 support zone and the $3.30–$3.50 resistance. A sustained move above $3.00 is seen as critical for maintaining bullish momentum, while a pullback to $2.88–$2.89 would test its resilience. In parallel, six XRP ETF applications are under review by the SEC, with a decision expected in October. These could catalyze further institutional demand and reshape the token’s trajectory.