Key Takeaways
XRP (XRP) held above the $1.40 support level after the Federal Reserve announced its decision to keep interest rates unchanged in what was Jerome Powell's final meeting as chair. The token, which trades on multiple chains, has lagged the recent performance of larger cryptocurrencies as investors await clarity on the central bank's future policy.
"The key question going in was whether he would preserve the Federal Reserve’s independence from presidential influence,” James Butterfill, head of research at CoinShares, said regarding incoming chair Kevin Warsh’s recent Senate hearings. “Markets appeared satisfied by his answers."
While Bitcoin (BTC) and Ethereum (ETH) have posted 30-day gains of 17% and 16% respectively, XRP has returned just 5% in the same period, per data from CoinGecko. Broader market sentiment has improved, with crypto exchange-traded products seeing $1.2 billion in inflows last week, according to a CoinShares report. XRP-specific funds attracted $25 million of that total.
With Kevin Warsh expected to be confirmed as the new Federal Reserve chair next month, his initial policy stance will be critical for risk assets. A dovish turn could provide the fuel for XRP to break its long-term descending channel and target the $1.80 resistance level, while a hawkish message could see the price retest its cycle low of $1.30.
From a technical perspective, XRP’s weekly Relative Strength Index (RSI) recently dipped to 30, a level that has historically marked a long-term bottom for the asset. The last three times the weekly RSI fell below 33, the token saw rallies ranging from 226% to 1,460%. If the pattern holds, the recent low of $1.30 could represent a significant buying opportunity.
The daily chart shows the price consolidating above the 200-day exponential moving average, which currently sits near the key support level of $1.40. A successful retest of this area could provide the liquidity for a move toward the first major resistance at $1.60, representing an 18% upside. Swing traders may see a favorable risk-reward ratio of 4.5 by entering at $1.40 with a stop-loss at $1.35 and a final take-profit target near $2.00.
This technical setup comes as macroeconomic headwinds appear to be easing. The price of oil has fallen 19% from its recent peak to $95 a barrel as peace negotiations in the Middle East progress, reducing concerns of inflation driven by energy costs.
This article is for informational purposes only and does not constitute investment advice.
