XRP Price Prediction Ahead of the Fed Interest Rate Decision

The XRP price rose for three consecutive days as the crypto market stabilized after the recent crash. Ripple token rose to a high of $1.9293, up sharply from the year-to-date low of $1.8055. This article explains what to expect ahead of the upcoming Federal Reserve interest rate decision.

Federal Reserve to be the Main Catalyst

XRP and other altcoins will react to the upcoming Federal Reserve interest rate decision, which will come out on Wednesday this week.

Polymarket and Kalshi data indicate the bank will keep interest rates unchanged between 3.50% and 3.75%. It will be the first time that the bank has left interest rates intact since it started cutting them last year.

In general, the main decision will likely not have a major impact on assets since it has already been priced in by market participants.

However, the decision may still drive the market. For example, the last dot plot pointed to just one rate cut this year. Therefore, a change in view may help to drive the performance. For example, if the bank hints towards more cuts, it may lead to higher prices.

Jerome Powell’s press conference will also be important as it will be his first one since Trump’s Department of Justice (DoJ) issued a subpoena on him and the Fed. For example, the press may want to know whether he will be willing to remain at the Fed when his term as the governor ends.

XRP ETF Inflows and Ripple’s International Growth Continued

Meanwhile, the XRP price rebound coincided with ongoing inflows into spot exchange-traded funds (ETFs). Data compiled by SoSoValue shows that spot XRP ETF inflows rose by over $9.16 million on Tuesday, bringing the cumulative total net inflows to over $1.25 billion.

The value of XRP ETFs traded on Tuesday rose to over $20 million, with the most active being the Bitwise XRP ETF, which recorded $7.52 million in volume. Canary’s XRPC had a volume of $2.74 million.

All these funds now hold over $1.38 billion in assets, which is equivalent to 1.18% of the market capitalization. That is a sign that they have more room to catch up with Ethereum and Bitcoin.

XRP price has benefited from the recent partnerships and international expansion. Ripple Labs announced that it had received licenses in the United Kingdom (UK) and in Luxembourg. The Luxembourg license is notable because it is a member of the European Union, meaning that Ripple Labs will be able to do deals there.

Ripple Labs also received a banking license from the Office of the Comptroller of the Currency (OCC) in the United States. This license will help it to offer more services in the long term.

Another major announcement came from GTreasury, a company it acquired in 2025 for $1.2 billion. In a statement, GTreasury announced that it was launching Ripple Treasury, the first comprehensive treasury product that will integrate with its digital asset infrastructure.

GTreasury will leverage Ripple USD (RLUSD) and the XRP Ledger (XRPL) to offer cross-border payments, thereby reducing FX costs. It will all eliminate the need for pre-funding requirements and unlock trapped working capital.

XRP Price Technical Analysis

The daily timeframe chart shows that the XRP price has formed a triple-bottom pattern at $1.7830 and a neckline at $2.4162, its highest level in January. This pattern often leads to a rebound as it means that bears are hesitant placing bearish trades below it.

The Relative Strength Index (RSI) has been rising and is nearing the neutral 50 level. Therefore, the most likely scenario is where it continues rising, especially if the Federal Reserve delivers a dovish interest rate decision.

If this happens, the next key resistance level to watch will be at $2.4, the neckline of the triple-bottom pattern.