XRP's journey towards a potential rally to $1.3 might face a delay following Federal Reserve Chair Jerome Powell's recent remarks, which have stirred controversy. Although Powell’s statements are not directly targeting Ripple, any political undertones could induce market volatility. Such volatility may affect investor sentiment concerning the broader crypto market, in which XRP is actively traded. Federal Reserve dynamics have always had ripple effects, so to speak, in the financial markets. On November 7, Powell asserted his intention not to resign, even if the President-elect, Donald Trump, were to request it. Powell emphasized the necessity for presidents to have legal authority if they wish to remove a central bank chief. This arose after Politico reported that some Trump advisors hinted at Powell’s resignation.
In conjunction with these remarks, Powell announced the Fed's decision to lower interest rates to a range between 4.5% and 4.75%, marking the second consecutive rate cut following a significant 50 basis point reduction previously in September. Interestingly, Powell’s announcement on rate cuts had an overall positive impact on the crypto markets, as evidenced by Bitcoin’s surge past $76,600. However, XRP's price remained at $0.5498 on November 8, reflecting a 1.4% decline over 24 hours. Despite the momentary drop, XRP is preparing for a significant breakout that may propel it by 139% beyond annual highs.
Analyzing XRP's price charts reveals a long-standing downtrend within a descending channel pattern since late 2021. This indicates sustained bearish pressure, with key support stationed around $0.47 and resistance near the channel's upper boundary around $0.65. As XRP approaches this critical resistance, a breakout could signal a substantial momentum shift, potentially catapulting its price to the anticipated $1.3 milestone for the first time since early 2022. The Relative Strength Index (RSI) is at 50.28, suggesting a balanced contention between bullish and bearish forces.
A rising RSI often indicates building buying pressure that could elevate XRP’s price further. Conversely, should XRP slip below the midpoint of the descending wedge, the bullish outlook could be invalidated, urging the asset towards lower support levels around $0.35. While external macroeconomic factors like Federal Reserve policy can cloud the short-term outlook for XRP, the technical indicators still present a possible trajectory toward recovery and growth. Investors closely eyeing XRP will need to stay vigilant as both internal and external influences play out in the crypto arena.
