XRP Price Prediction: Powell's hawkish remarks bring XRP down to the $2.5 key support level, technical indicators point to $3.

Yesterday, in U.S. time, the Fed announced a rate cut of 25 basis points as scheduled, but Chairman Powell subsequently questioned the certainty of another rate cut in December, triggering a violent market shakeup. As a result, XRP fell 6% in the past 24 hours, but the token is currently at the crucial support level of $2.5 and is expected to confirm a bullish inverse head and shoulders pattern here. Despite increasing macro uncertainty, XRP has performed better than its peers recently, with its first Spot ETF scale exceeding $100 million, providing room for imagination for future trends.

The Fed's interest rate cut has landed, but the market is skeptical about another cut in December.

Under the general market expectation, the Fed announced yesterday to lower the benchmark interest rate by 25 basis points. However, Fed Chairman Powell's remarks poured cold water on the financial markets, as he emphasized that whether there will be another rate cut in December is not “set in stone.”

Powell stated: “In this committee's discussion, there are strong disagreements on how to proceed in December.” He added: “Further rate cuts at the December meeting are not a foregone conclusion, far from it.” Although the Fed is still set to implement a second rate cut as planned, Powell's remarks immediately caused a significant fall in the cryptocurrency market. According to FedWatch data, prior to this, the market's bets on a rate cut in December exceeded 90%, but it has now fallen below 70%. This sudden shift in expectations will impact cryptocurrency asset prices in the short term.

XRP outperformed the mainstream, Spot ETF boosts market confidence

Despite the tightening macro environment, XRP still rose by 5.7% in the past week, making it the best performer among the top five cryptocurrencies by market capitalization.

• Institutional Interest Driven: Evernorth has launched an XRP fund of up to $1 billion, providing key momentum for the rise in XRP prices.
• Positive ETF Progress: The first Spot XRP Exchange-Traded Fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC), REX-Osprey XRPR ETF, has seen its assets under management (AUM) surpass the $100 million mark.
• ETF Expectations Heat Up: Following the approval of the first Solana Spot ETF this week, which attracted over $300 million in assets in just a few days, the market expects the SEC may soon approve similar XRP Spot ETF products. If demand for this fund is strong, it will undoubtedly further drive up the price of XRP.

Technical Analysis: XRP hits $2.5 key support level, can it trigger an “inverse head and shoulders pattern”?

The interest rate cut itself is bullish for the altcoin market, but the uncertainty of the Fed's actions may slow the rise. Currently, the market sell-off pressure is accelerating: in the past 24 hours, the price of XRP has retraced by 6%, but the trading volume has increased by 13%.

XRP has reached a key support level of 2.5 USD, which is the bottom support level of the “inverse head and shoulders pattern” (H&S) formed after the flash crash on October 10. As long as this support level is not broken, this pattern indicates that the price of XRP will experience a significant rise.

(Source: TradingView)

• Bullish Confirmation: If the bulls can strongly buy at the $2.5 support level and push the price above the $2.7 neckline resistance level, it will confirm the successful initiation of the “inverse head and shoulders pattern,” with a target of starting a 20% rise towards the $3 round number.
• Bearish Risk: However, the Relative Strength Index (RSI) on the 4-hour chart is rapidly falling, indicating that negative momentum is accelerating. If the price falls below $2.5, it will invalidate the bullish bias of the “inverse head and shoulders pattern” and may trigger a deeper pullback.

Conclusion

Powell's cautious remarks have brought short-term volatility to global financial markets, putting pressure on crypto assets such as XRP. However, XRP has shown a degree of resilience amid macro uncertainty, particularly supported by institutional interest and expectations for the XRP Spot ETF. The key for the future market lies in whether it can hold the support level of 2.5 dollars and successfully activate a bullish reversal pattern on the technical chart. For traders focused on altcoin investments, 2.5 dollars is an important barometer for judging the XRP price trend.