Crypto investors are closely watching the Federal Reserve, anticipating a potentially hawkish signal from Fed Chair Kevin Warsh that could impact digital asset prices, particularly XRP. The market expects Warsh to address the press at 2:30 PM Eastern Time, following the central bank’s policy decision.
Fed policy jitters heighten XRP volatility
Analyst Egrag Crypto has charted short-term accumulation zones for XRP in the event of further market turbulence. Using a 30-minute price chart, Egrag identified an initial accumulation area between $1.26 and $1.30, where XRP is trading at the moment.
Egrag stated that volatility driven by Fed decisions can open up new buying opportunities, not just trigger panic. Should XRP break below the current range, the main target zone for accumulation lies between $1.25 and $1.15, beneath a key support line that analysts are watching closely.
Volatility creates opportunity, and a sharp downside move could generate valuable entry points for disciplined investors rather than reasons to panic. The main focus remains on the $1.15 mark as a potential stronghold for bulls.
XRP’s price previously tested support between $1.15 and $0.95, and according to Egrag, this lower tier might be avoided if bullish momentum strengthens before the $1 level is breached. Liquidation data shows $26.9 million in long positions wiped out, while shorts lost just $3.59 million throughout recent swings.
Mini dictionary: Open Interest (OI) weighted funding rate, a metric used in derivatives trading that reflects the premium (or discount) paid by long or short positions over time. When positive, it often suggests that traders are paying to hold long positions, signaling bullish sentiment.
| Price Level | Accumulation Zone |
|---|---|
| $1.26-$1.30 | Current zone |
| $1.25-$1.15 | Main accumulation target |
| $1.15-$0.95 | Lower-tier support (historical test) |
Market liquidity, sentiment, and trading patterns
The broader market reaction to the Fed’s decision may determine XRP’s next direction. If bullish traders maintain dominance and keep the OI-weighted funding rate positive, Egrag suggests a recovery move toward $1.40 is possible.
Currently, Binance, one of the world’s leading cryptocurrency exchanges, reports its bullish XRP traders outnumber short sellers by two to one. However, this trend is not reflected across the entire market, as the broader long-short ratio shifted bearish ahead of the Fed’s announcement, falling to 0.9581.
While Binance data shows bullish behavior among its users, the overall sentiment in the derivatives market suggests caution as traders brace for volatility tied to Fed policy.
This shift in sentiment and positioning comes after a significant volume of long liquidations, illustrating the heightened sensitivity of digital asset markets to macroeconomic policy signals.
