XRP Bounces Back from Fed Hike and Regulatory Disappointment

XRP's price volatility this week led to leveraged traders being forced out of the market after the Federal Reserve raised interest rates by 25 basis points to 3.75%, 4%. This move, combined with the Senate's failure to advance the CLARITY Act, created a challenging environment for XRP.

According to CryptoCompass, $26.9 million of XRP long positions had been liquidated during the recent volatility, compared to only $3.59 million of shorts. This imbalance can exacerbate price declines as forced liquidations create additional market selling.

Egrag Crypto told CryptoCompass that 'volatility creates opportunity' and identified $1.26, $1.30 as an initial accumulation zone. A deeper selloff would put $1.25, $1.15 into focus.

The positioning picture now looks less aggressively bullish, with Binance's XRP perpetual funding rate at about -0.0053%, indicating that positioning on Binance has tilted away from crowded bullish leverage.