XRP price struggles to hold ground as bearish pressure mounts
XRP tumbles after Kevin Warsh's first Fed meeting shakes markets. Explore the key takeaways, market reaction, and what it could mean for XRP next.
Quick Summary
XRP price has slipped beneath the psychologically significant $1.20 mark as a confluence of macroeconomic headwinds, weak institutional demand, and deteriorating market sentiment conspire against the token’s near-term prospects.
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A rally that couldn’t last
XRP briefly climbed to $1.29 earlier in the week, lifted by optimism over a newly announced US-Iran peace agreement,
But bears quickly returned and pushed the token back below $1.20, a level that has since flipped to resistance.
XRP is currently trading around $1.14, with short-term support at $1.13 being the last line of defence that traders are watching closely.
The Fed factor
Fed Chair Kevin Warsh struck a hawkish tone in his first post-meeting press conference.
Warsh prioritised monetary stability over early rate cuts, reigniting speculation that a 2026 rate hike is possible.
The prospect of higher or sustained borrowing costs has cooled appetite for speculative assets broadly, dragging cryptocurrencies, including XRP, back into the red.
Fear is back in the market
The Crypto Fear & Greed Index fell to 15 on Thursday, deep in “Extreme Fear” territory, sliding from 22 the previous day.
The reading signals that investors are actively reducing exposure to risk assets.
Caution is likely to linger in the near term.
Institutional appetite fades
XRP spot ETFs recorded zero inflows on Wednesday, reversing the mild positive momentum seen earlier in the week ($3 million on Monday, $5 million on Tuesday).
XRP futures Open Interest declined to roughly $2.66 billion from $2.79 billion the previous day.
Traders are closing out positions rather than building new ones, a sign of weakening conviction in XRP’s near-term outlook.
What the charts are saying
XRP currently trades beneath its 50-day, 100-day, and 200-day EMAs.
The RSI indicator sits at around 39, having retracted from 50, signalling a bearish trend that is not yet oversold.
The MACD histogram offers a mild positive note.
Downside momentum appears to be slowing, suggesting sellers are in control, but a sharp capitulation may not be imminent.
The Parabolic SAR at $1.08 is the immediate downside marker.
A daily close below $1.08 could open the door to the June lows around $1.05.
On the upside, any credible recovery would need to clear $1.27 first, with $1.39 and $1.58 as the next key hurdles.
The bottom line
XRP finds itself at a delicate juncture. Macro pressures from a hawkish Federal Reserve, a risk-off shift in broader sentiment, dwindling institutional ETF demand, and declining futures Open Interest are all pointing in the same direction: down.
The critical support zone between $1.05 and $1.08 will be the market’s next significant test. Until XRP can decisively reclaim the $1.27-$1.28 area, the path of least resistance remains lower.
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