XRP price has been struggling to hold above its $2.40 support level after a sharp rejection near the mid-Bollinger Band at $2.75. The recent Heikin Ashi candles show lower highs and smaller-bodied red candles—classic signs of fading bullish momentum. The Bollinger Bands are tightening, pointing to volatility compression, and whenever XRP enters this phase, a breakout (usually downward) follows.
Now, when you factor in the macroeconomic backdrop from the Federal Reserve’s Beige Book, the setup looks increasingly fragile.
How Is the Fed’s Beige Book Hurting Crypto Sentiment?
The Beige Book painted a picture of a sluggish U.S. economy: slow hiring, tariff-driven inflation, and cautious businesses holding off on expansion. Investors read this as a warning that growth is stalling, even as inflation remains sticky.
Normally, rate cuts by the Fed should boost risk assets, including crypto, but here’s the catch—this time, the Fed is cutting rates not because of recovery optimism, but because the economy is losing momentum. That kind of easing doesn’t fuel speculation; it signals fear. And markets tend to dump volatile assets like XRP when uncertainty rises.
Are Tariffs and Inflation the Hidden Enemies of Crypto Bulls?
Yes. The Beige Book’s comments on “tariff-induced cost increases” are key. Higher import costs raise inflation, forcing the Fed into a corner—either keep rates high and risk a slowdown or cut and risk even more inflation.
For XRP, this matters because inflation-driven volatility pushes traders toward safer assets (like Treasury yields and stablecoins). Add to that a risk-off mood in equities, and liquidity quickly drains out of altcoins. Historically, when inflation reports rise while growth stalls, XRP loses between 15–25% over the following two weeks.
What Does the Chart Say About XRP’s Next Move?
XRP/USD Daily Chart- TradingView
On the chart, XRP price is trading below both the 20-day moving average (blue line) and the middle Bollinger Band—strong resistance near $2.75. The lower Bollinger Band sits near $2.30, but if this level breaks, the next visible Fibonacci support is around $1.95, followed by $1.50.
There’s also a descending channel forming since the October 10 drop. Unless XRP can reclaim $2.60 and close above it with volume, the bias remains bearish. Momentum traders are watching for a daily close below $2.40 to confirm another leg down.
XRP Price Prediction: Could XRP Price Fall to $0.75?
If the Fed’s October meeting triggers another rate cut without boosting investor confidence, XRP could see accelerated outflows. Combine that with a risk-averse market and ongoing tariff uncertainty, and a retest of lower psychological supports becomes likely.
A long-term Fibonacci retracement from the July low shows $0.75 as a potential worst-case downside if the broader crypto market enters a correction phase led by macro headwinds.
What Might Prevent a Crash?
Two things could flip this scenario:
- A dovish Fed statement paired with strong liquidity injections.
- Renewed optimism around Ripple’s partnerships or a major regulatory breakthrough.
If either occurs, XRP price could bounce toward $2.80–$3.00, but without that catalyst, every rally may get sold into.
Final Take
The Beige Book hints at a cooling economy and rising inflation pressure—an ugly mix for speculative markets. XRP’s chart mirrors that anxiety, with technical resistance stacking up while momentum fades. Unless macro conditions shift or Ripple delivers a major positive headline, $XRP next destination could be below $2, and in an extended downturn, $0.75 isn’t out of reach.
In short: the data isn’t lying. The market’s telling you what’s coming.
