XRP News Today: XRP at Crossroads: Institutional Bet Meets Bearish Pressures as Fed Watch Intensifies

XRP, the digital asset issued by Ripple, has shown mixed signals as it navigates a critical juncture in its price trajectory. On Friday, the token traded above $2.45, supported by a broader cryptocurrency market rally and anticipation of the U.S. Consumer Price Index (CPI) data, which revealed inflation rising at a slower pace than expected. The CPI report, released by the U.S. Bureau of Labor Statistics, showed annual inflation at 3%, with core inflation easing slightly to 3% from 3.1% in August, according to a TradingView report. While this softening has fueled hopes of an aggressive Federal Reserve rate-cutting cycle, XRP remains under pressure to break out of a prolonged consolidation phase between $2.30 and $2.60, as noted in an XRP price prediction.

Regulated derivatives activity has surged, with CME Group reporting $26.9 billion in notional volume for XRP futures over five months, driven by growing institutional adoption, according to a Benzinga report. The exchange's XRP micro and standard futures contracts, launched in April, have attracted significant liquidity, with open interest (OI) metrics signaling cautious optimism. The OI-weighted funding rate for XRP rose to 0.0059% on Friday, up from 0.0032% earlier in the week, indicating heightened long-position activity, per an FXStreet analysis. However, futures open interest remains below October's peak of $9 billion, suggesting investors are still hesitant to commit to sustained bullish bets, the FXStreet piece notes.

A key catalyst for XRP's near-term outlook is the impending Nasdaq listing of Evernorth, a Ripple-backed treasury firm. Evernorth plans to raise $1 billion via a SPAC merger with Armada Acquisition Corp, with proceeds earmarked for XRP purchases, according to Benzinga. This move could inject fresh liquidity into the market and signal institutional confidence in the token's utility. Meanwhile, Ripple co-founder Chris Larsen's recent sale of 50 million XRP—his first major offload since July—has sparked short-term volatility, though Benzinga notes historical patterns suggest such sales often occur near price tops.

Technical analysts remain divided. A "rebound is about to begin," crypto chart analyst Ali Martinez told Benzinga, highlighting a buy signal on the XRP 4-hour TD Sequential. Others warn of a fragile breakout, with the $2.40 level acting as a critical support zone. If XRP fails to hold above this threshold, it risks sliding toward $2.30, with further downside potential to $2.10–$2.20 if inflation data disappoints, according to crypto.news. Conversely, a sustained push above $2.60 could trigger a test of $2.70–$3.00, particularly if macroeconomic conditions favor rate cuts, per a Yahoo Finance piece.

The broader market environment remains a wild card. While the Fed's October 29 policy meeting is widely anticipated to deliver a 25-basis-point rate cut, any deviation from expectations could amplify XRP's volatility. The CME FedWatch tool currently assigns a 98.97% probability to the cut, with a 91.8% chance of another 25-basis-point reduction in December, the TradingView report indicated. For now, XRP's fate hinges on whether inflation continues to cool and if institutional demand, bolstered by Evernorth's listing, can overcome lingering bearish pressures from whale activity and leveraged short positions, according to a CoinDesk report.