Fed Rate Hike Sparks XRP Sell-Off Fears: AI Predicts Price Plunge
The recent change in the US monetary landscape has increased expectations of a potential Federal Reserve rate hike at its next meeting on September 15-16. As investors and experts price in this possibility, risk-on assets are flashing warning signs.
According to ChatGPT, XRP is likely to react 'more violently' to a Fed hike despite having two cushions: strong ETF demand and the CLARITY Act process.
The AI predicted an initial 4-8% decline in response to a 25 bps increase on September 16, which would materialize in a dip below $1.30 from its current levels of around $1.42. This could worsen in the following days and weeks, with $1.20 emerging as the first major support to be tested.
However, if Warsh takes an even more hawkish approach in his post-FOMC meeting speech, XRP could 'fall further toward $1.05-$1.15.'