XRP News Today: Federal Reserve's Rate Move Could Be XRP's Catalyst for Breakout

Analyst Says XRP “Big Move Imminent” After Spotting This Bullish Signal

The upcoming U.S. Federal Reserve (Fed) meeting in September 2025 has positioned itself as a pivotal event for global financial markets, particularly for risk assets such as cryptocurrencies. With the Fed widely anticipated to cut interest rates by at least 25 basis points—and possibly 50—market participants are speculating about the implications for XRP, which has been trading in a consolidation phase near the $2.80–$2.85 range. The move is expected to inject liquidity back into the market, creating favorable conditions for XRP and other altcoins to see renewed demand [2].

Historically, XRP has not only followed Bitcoin’s lead but also demonstrated strong performance during liquidity-driven rallies. Analysts suggest that a dovish Fed, especially one reacting to economic weakness, may provide immediate upward momentum for XRP. This is consistent with broader macroeconomic dynamics, where lower interest rates typically lead to a shift in capital toward higher-risk, higher-return assets. The weakening August jobs report has further reinforced expectations of a rate cut, intensifying speculation about the potential breakout of XRP above key levels [2].

On the technical front, XRP is currently hovering near $2.82 after weeks of decline from its July peak above $4. The Bollinger Bands on the daily chart indicate a compressed price near the lower band, suggesting the likelihood of a volatility spike. The $2.75–$2.80 zone has acted as a recurring support level, and a daily close above $2.90 would strengthen the case for a recovery, potentially leading to a push toward $3.20. Failure to maintain this support level, however, could expose XRP to deeper corrections at $2.60 and $2.30 [2].

The 4-hour and 1-hour charts further reinforce the idea of a pending breakout. On the 4-hour chart, XRP is trapped in a tight range between $2.80 and $2.90, with narrowing Bollinger Bands signaling a potential shift in volatility. The 1-hour chart shows consolidation with small-bodied candles, but buyers have consistently stepped in below $2.80, indicating hidden strength. A move above $2.85 could act as the initial trigger for a bullish continuation, with the psychological $3 level representing a key target for intraday traders [2].

The broader macroeconomic environment also plays a critical role in shaping expectations for XRP. The Fed’s decision to cut rates, despite inflation remaining above target, creates a mixed environment for the crypto market. On one hand, liquidity injection supports risk-on sentiment, potentially benefiting XRP and altcoins. On the other, if inflation flares up post-cuts, Bitcoin may act as a hedge, indirectly supporting XRP. The outcome of the Fed’s decision in mid-September is thus crucial for determining the trajectory of XRP in the near term [2].

Market observers have outlined three potential scenarios based on the Fed’s actions. In a bullish case, a 25–50 basis point rate cut could push XRP above $2.90, with $3.20–$3.25 becoming the next target in the coming weeks. A bearish scenario, if the Fed disappoints the market or inflationary concerns resurface, could see XRP break below $2.80, exposing it to support levels at $2.60 and $2.30. The base case assumes XRP holds the $2.80 level and continues to build momentum as it awaits the Fed’s decision for a directional cue. Analysts emphasize that the $2.80–$2.90 range is the key battleground for XRP’s next major move [2].

Source: [1] The Ripple Effect of US Federal Reserve Rate Changes on Global Currencies (https://www.globalbankingandfinance.com/the-ripple-effect-of-us-federal-reserve-rate-changes-on-global-currencies) [2] Is XRP About to Break Out Above $3? (https://cryptoticker.io/en/is-xrp-about-to-break-out-above-dollar3/)