XRP Price Jumps 9% In a Week As Fed Rate Cut Odds For Wednesday Hit 97.8% On CME

The XRP price has seen a significant increase, jumping 9% in the past week and 1.4% in the last 24 hours, reaching $2.65. This rise is accompanied by a 3% increase in trading volume, which now stands at $4.69 billion.

This market movement occurs as the odds of a Federal Reserve rate cut on Wednesday have soared to 97.8%, according to the CME Group’s FedWatch gauge.

The upcoming rate decision takes place against the backdrop of a government shutdown that has postponed the release of key jobs and inflation reports. This situation leaves Federal Reserve Chair Jerome Powell and policymakers in a difficult position, relying on private data and market signals rather than official government statistics.

Despite these challenges, economists widely believe that a rate cut is the appropriate course of action, citing slow job growth, rising unemployment, and inflation that remains stagnant at 3%.

A rate cut would reduce the federal funds rate to a range of 3.75%-4%, down from its current 4.00%-4.25%. This development is generally viewed as beneficial for the cryptocurrency market, as lower interest rates tend to increase liquidity, often leading to increased investment in riskier assets like cryptocurrencies.

XRP Coin Price Dynamics

The price activity of XRP has been particularly active as traders position themselves in anticipation of a Federal Reserve move. Over the past seven days, XRP has surged approximately 9%, reaching highs of $2.66. The coin is currently trading within a narrow range, reflecting growing enthusiasm for monetary easing across cryptocurrency exchanges.

Several significant inflows have been observed, with new buyers consistently entering the market whenever the price dips towards the $2.60 level.

October has seen bullish forecasts from market experts, who predict that XRP's price could potentially climb to $3.25 or higher if current buying momentum is sustained. Technical analysis from Changelly suggests that XRP may trade between $2.87 and $3.25 this month, indicating a possible increase of 12% to 30% from current levels.

These price targets are further bolstered by the expectation of increased liquidity entering the markets following the Federal Reserve meeting.

On-chain indicators also support a positive outlook for XRP's price. The number of active wallet addresses and the volume of large transactions are on the rise. This trend suggests that a growing number of traders, investors, and even institutions are increasing their positions in XRP ahead of the Federal Reserve's decision.

XRP Price Prediction: Technical Analysis

XRP's price action is currently showing significant trends on charts, with strong support and resistance levels identified at key moving averages. The latest daily chart provides a clear technical overview.

The price is trading at $2.6524, just below the 50-day Simple Moving Average (SMA) of $2.7651 and above the 200-day SMA of $2.6116. This configuration indicates an improving trend, with the coin demonstrating resilience by bouncing off major support levels.

The nearest resistance level is at $2.77, which corresponds to the 50-day SMA. A sustained surge above this level could lead the price to target the next resistance zone near $3.00. This area represents a significant psychological and technical barrier where sellers have previously emerged.

Support remains strong at $2.61, the level of the 200-day SMA. A breach below this could potentially trigger further selling pressure, pushing the price down to $2.50 and $2.30. However, buyers are currently defending these levels effectively.

Technical indicators also suggest further upside potential. The Relative Strength Index (RSI) is at 53.10, indicating solid momentum without being in overbought territory. The Moving Average Convergence Divergence (MACD) is showing a slightly bullish trend, with a value of 0.0439 and the signal line at -0.0470, suggesting that buyers are gaining strength and have room for further growth.

The Average Directional Index (ADX) is at 39.30, indicating that the current trend is strengthening. High volatility could potentially lead to breakout moves in the near future.

If the XRP price closes above $2.77 in the upcoming trading sessions, it could rapidly advance towards $3.00 and then to $3.33. This upward movement could be further amplified if the Federal Reserve's rate cut sparks another wave of buying activity.

Conversely, a rejection at the resistance level might lead to XRP falling back towards support. However, as long as the price remains above $2.61, the overall trend appears to be positive.

The potential for significant institutional investment remains, and any news regarding spot XRP ETFs or major partnerships could further fuel the rally. For the time being, traders are closely monitoring the Federal Reserve's actions, with the majority anticipating that an expected rate cut will drive additional gains in XRP's price this week.

Should the current momentum persist and the Federal Reserve implement the anticipated rate cut, XRP could break through key resistance levels and continue its upward trajectory into early November. Nevertheless, it remains crucial for traders to maintain a close watch on key support levels, particularly around $2.61, for effective risk management.