XRP price drops to $2.45 as Federal Reserve cuts interest rates by 25 basis points and US-China trade deal negotiations continue

The strength of XRPL fundamentals continues to grow as institutional and regulatory support gathers momentum. Apart from the price movements, the XRP Ledger (XRPL) has seen ongoing network activity with the introduction of RLUSD, Ripple’s stablecoin backed by the dollar. This addition has provided liquidity to on-chain settlement pathways, connecting XRP with traditional fiat structures, solidifying its role as a neutral settlement asset for institutional payments. Ripple’s increased visibility in digital asset policy conversations at the White House indicates a deeper involvement with regulatory and governmental frameworks. These developments, coupled with Ripple Labs’ partnerships with traditional financial institutions in exploring blockchain-based remittance systems, are bolstering investor confidence. The presence of an institutional layer in this space adds a concrete storyline to the ongoing technical consolidation, setting XRP up for a significant rebound once macroeconomic headwinds subside.

Key price levels between $2.18 and $2.80 will dictate the short-term direction for XRP. Maintaining a level above $2.45 could lead to a surge in buying pressure, pushing for retests of the $2.60-$2.72 range. Failure to reclaim these levels may result in a drop towards $2.18 or potentially even $2.00 in a worst-case scenario. Historical data suggests that XRP typically sees an 18-22% recovery within two weeks following a 7% daily decline, a pattern that has repeated several times since 2023. Institutional support remains formidable, indicated by significant buy orders in the $2.30-$2.40 range, suggesting that institutional investors are accumulating XRP at discounted rates. A confirmed breakthrough above $2.80 could pave the way for further gains towards the $3.00-$3.20 levels, aligning with resistance levels in its broader head-and-shoulders formation.

Data on macro and whale behavior suggest strategic accumulation of XRP is currently underway, with significant increases in holdings by large addresses coinciding with the current price dip. Historical trends show that similar accumulation phases have historically preceded substantial uptrends, with XRP appreciating by 25-40% over the following month. Overall market conditions, such as future easing by the Fed, improving U.S.-China trade dynamics, and potential liquidity expansion from ETFs in the crypto market, serve as medium-term tailwinds. Despite short-term market volatility, the accumulation patterns from institutional players indicate that price levels below $2.50 are seen as strategic buying points rather than signals to exit positions.

While retail sentiment towards XRP has cooled during recent pullbacks, professional investors maintain a cautiously optimistic stance. Data from Deribit shows a higher call-to-put ratio, suggesting anticipation of a rebound in the fourth quarter. The narrowing of volatility premiums indicates an expectation of stability following recent market turbulence. However, market confidence is contingent on maintaining the support levels around $2.30-$2.40, as a breach could trigger broader liquidations and disrupt short-term bullish structures. Analysts suggest that the next price catalysts for XRP are likely to come from macroeconomic liquidity dynamics rather than internal fundamentals, with the focus on Federal Reserve communications and U.S. economic data releases for shaping near-term price direction.

Based on a comprehensive analysis of market, technical, and institutional data, XRP currently holds a status of Hold. Short-term momentum is fragile due to the struggle below key moving averages and defensive macro sentiment. Nevertheless, the on-chain resilience, growing institutional adoption, and robust transaction volumes lay a solid groundwork for long-term bullish prospects. If XRP manages to break above $2.80, the bias will turn unmistakably bullish, targeting levels of $3.20-$3.50. Conversely, sustained weakness below $2.30 could expose levels of $2.00-$2.10. XRP appears to be consolidating in a critical accumulation area, balancing between macroeconomic caution and underlying strength, making it a closely monitored asset as we head into November.