XRP Price Outlook: Trump's Fed Move & Market Sentiment

Ripple's XRP is currently trading at $2.08, slightly above key support levels. The cryptocurrency market is closely watching the potential political fallout from a possible change in leadership at the U.S. Federal Reserve.

XRP Price and the Trump-Fed Uncertainty

Reuters reports that President Donald Trump is considering removing Fed Chair Jerome Powell. This action could significantly impact traditional financial markets and potentially boost Bitcoin above $110,000, according to some analysts. This uncertainty could lead to increased volatility in the cryptocurrency markets.

The potential consequences of this political move are far-reaching. Dismissing the Fed Chair would challenge the central bank's independence, potentially harming global confidence in U.S. monetary policy. This instability could paradoxically fuel a surge in cryptocurrencies. Bitcoin's status as a hedge against sovereign risk could strengthen, potentially pulling altcoins like XRP along.

XRP Price Projections

If Bitcoin surpasses $110,000, XRP could see a 30% to 40% increase, potentially reaching:

• $2.21–$2.22 (EMA confluence)
• $2.30 (major liquidation zone)
• $2.45 (next resistance level)

A sustained Bitcoin breakout could even push XRP towards $2.75, with a potential high of $3.10, assuming sustained market interest in altcoins.

Derivatives Markets Show Cautious Sentiment

Despite the bullish potential, XRP derivatives data suggests a more conservative outlook. While retail investors may be optimistic, institutional investors are showing caution, hedging their positions in the face of macro uncertainty.

Over the last 24 hours:

• XRP derivatives volume decreased by -23.42% to $2.97 billion.
• Open interest fell by -0.42%.
• Options volume dropped by -61.64%, suggesting institutional retreat from high-volatility positions.
• Options open interest increased by +31.16%, indicating investors are seeking protection against volatility.

The 24-hour long/short ratio is 0.9826, implying a nearly even split between bullish and bearish bets, which is unusual during strong bull trends.

Binance shows a long/short ratio of 2.076 for XRP/USDT, and OKX shows 1.66, indicating strong retail long positions. However, analysis of top traders on Binance reveals a more cautious stance, with a long/short ratio by accounts at 1.9334 and by positions at 1.2435, suggesting larger investors are reducing leverage exposure.

Liquidation data further supports this; in the last 24 hours, long positions saw $432,340 in liquidations, compared to $312,330 for short positions. Across all timeframes, shorts consistently experienced less liquidation than longs, suggesting a potential bearish shift.

Conclusion

While the potential removal of Jerome Powell could significantly impact the cryptocurrency market, institutional investors are approaching this situation with caution. Derivatives data show signs of risk hedging and volatility anticipation. While an XRP price surge to $3.10 remains a possibility if prices stay above $2, macro instability could cause hesitation among traders.

Frequently Asked Questions (FAQs)

Q: Why could Powell's removal drive up crypto demand?
A: Such a move could undermine confidence in U.S. monetary policy, increasing the appeal of decentralized assets like XRP and Bitcoin.

Q: What are the XRP price targets?
A: Analysts forecast a 30-40% XRP rally, with potential targets at $2.45, $2.75, and a high of $3.10.

Q: What is the institutional sentiment towards XRP?
A: Despite retail bullishness, institutional investors are hedging, as seen in declining trading volume, increasing put options, and cautious long/short ratios.

Disclaimer: This analysis reflects the author's opinion and current market conditions. Conduct thorough research before investing in cryptocurrencies. Codeum is not liable for any financial losses.