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XRP, the fourth largest cryptocurrency by market capitalization, is trading in the red amid mixed trading action on the broader crypto market.
The Federal Reserve's two-day policy meeting begins today, Tuesday, and will continue into Wednesday, when investors expect the interest rate decision to be released.
Fed Chairman Jerome Powell has reiterated that the central bank is unlikely to decrease interest rates, and markets expect interest rates to remain steady at the end of the meeting. Nonetheless, investors will closely watch Powell's statements following the meeting for indications of an economic slowdown or monetary policy changes.
At press time, XRP was down 4.44% in the last 24 hours to $2.23, with nearly all the cryptocurrencies in the top 10, save Tron (TRX) in the red.
Tomiwabold OlajideThe crypto market remains in flux, with macroeconomic concerns and Federal Reserve policies influencing investor sentiment. XRP, like many other digital assets, has been affected by shifting market dynamics, leading to increased speculation about its next move.
Potential scenarios
Amid the ongoing market uncertainty, analysts are closely watching key levels, with XRP eyeing a potential drop to $2 if selling pressure intensifies. This key level is essential to hold to prevent a bearish outlook for XRP.
Godfrey BenjaminXRP turned down from a high of $2.47 on March 15 and is set to mark two out of three days of drop from this day. As highlighted, additional declines may target the $2 level.
Going forward, a break and close below $2 might complete a head-and-shoulders pattern. XRP may then drop to $1.28.
On the other hand, if the XRP price rises from its current level and breaks above the 50-day SMA at $2.49, it will pave the way for a possible climb to $3. Another possibility is that XRP could consolidate between the 50-day SMA and $2 for a little while longer before making its next move.
Vladislav Sopov
Dan Burgin