The Federal Reserve is walking the tightrope between fighting inflation and supporting the weakening job market. Jerome Powell revealed that The Fed only has one tool (profit ratio), but two conflicting goals. Interest rate cuts help employment, but risk inflation. This policy is the tug of war that has spread to financial markets XRP Price It’s no exception.
Why does FED policy shape XRP news and market sentiment?
Low interest rates usually promote liquidity towards risky assets like cryptocurrencies. However, Jerome Powell’s careful tone shows that the Fed is not completely committed to Devish’s path. For traders looking at XRP News, this is important as monetary policy often raises prices, but Hawkish’s shift could halt momentum. That tension has become the backdrop of the latest XRP news cycle and price action.
Powell’s remarks are directly linked to the mechanism of federal fund rates. By acknowledging that the Fed is being pulled in two directions, it essentially informs the uncertainty about how much liquidity the Fed is injecting to reduce rates to support work in the face of over-target inflation.
As the Fed continues to cut, banks will have cheaper access to reserves, increased liquidity, and XRP will be able to see stronger inflows as investors chase riskier returns. However, Powell also warned that if inflation proved sticky, the strategy could be reversed. This means that the Fed could even halt cuts, emit liquidity, and put pressure on XRP prices.
Current chart structure for this push-pull dynamic mirror XRP: stuck below resistance at 3.00, waiting for a clearer direction from monetary policy to determine whether the next move is a breakout or a deeper slide.
Powell’s comments highlight that the Fed no longer operates on a clear roadmap, but is responding to data injecting uncertainty into all risk assets, including XRP. The mention of tariffs as a temporary inflation driver suggests that the Fed expects external pressure to fade, but if they persist, compromises in reduction rates amid high inflation could backfire.
For XRP News, this means that short-term volatility is very sensitive to each economic release, and inflation prints and labor data directly shape market expectations for the Fed’s next move. That uncertainty could continue to lock XRP prices into choppy ranges until a critical policy direction emerges.
XRP Price Prediction: Technical collapse of XRP Prices
On the daily charts, XRP prices trade at nearly 2.84, below 3.00 pivots. Bollinger bands are expanding, showing an increase in volatility, with prices stuck near the lower bands. Hikin Ash Candles are continuing to reveal sales pressure last week.
The resistance is at 3.00 and 3.20, and the support remains at 2.70 (S1) and 2.55 (S2). Losing the midband (approximately 2.97) indicates that the seller is dominant unless the bull quickly regains the 3.00 zone.
Macro pressure meets XRP price structure
Powell described the Fed as a compromise between two competing goals. XRP News faces a similar intersection. A sustained dish cycle can cause a breakout to 3.20 or later, but sticky inflation and Hawkish’s hesitation can boost the price to 2.55 or 2.30.
XRP News: Important Levels to Track
- Resistance: 3.00 and 3.20
- Support: Deeper risk at 2.70, 2.55, and 2.30
- Volatility Watch: If the Bollinger Band is tightened, expect explosive movement
What is your XRP price forecast now?
In the short term, $XRP looks heavy. Under 3.00, the seller can drive it towards 2.70 or 2.55. In the medium term, it relies heavily on Fed signals. If rate cuts continue to defend the job market, liquidity could push XRP prices up to 3.20-3.50. Until then, the most likely outcome is integration between 2.55 and 3.00, with macroeconomic headlines steering the next critical move.