Ripple's Price Could Plummet Below $1.20 as Fed Hike Looms

The Federal Reserve's potential rate hike has investors and experts pricing in a possible increase for the next FOMC meeting on September 15-16. With odds over 50% on prediction markets, risk-on assets are flashing warning signs. ChatGPT estimates that XRP will react 'more violently to a Fed hike' due to its strong ETF demand and CLARITY Act process. However, if Warsh takes an even more hawkish approach in his post-FOMC meeting speech, XRP could 'fall further toward $1.05-$1.15.'

The AI predicted that the initial reaction to a 25 bps increase would be a 4%-8% decline, materializing in a dip below $1.30 from current levels. The situation could worsen with $1.20 emerging as the first major support to be tested.

ChatGPT believes that spot XRP ETFs could be the silver lining for the underlying asset, having remained relatively solid during market distress and picking up performance after the August rally. However, if the Fed surprises the market with a 50 bps rate hike, while Warsh goes fully hawkish, the altcoin's future could quickly deteriorate, with another leg down to and even below $1.00.