XRP Bulls Face Critical Test as Hawkish Fed Remarks Trigger Sell-Off
XRP's price dropped by nearly 5% following hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Economic Symposium. This decline came as traders reassessed their expectations for U.S. interest rates, leading to a broader sell-off in risk assets.
Despite the correction, XRP bulls are now facing a critical test of support at the $1.35-$1.40 zone. Warsh emphasized that the Federal Reserve remains focused on bringing inflation back toward its 2% target, prompting markets to reassess expectations for the September policy meeting.
The rate hike odds reportedly climbed from roughly 36% to 56%, increasing pressure on risk assets and making speculative assets less attractive. This matters for crypto as higher interest rates can reduce liquidity.
XRP's recent pullback is part of a broader trend, with the token still up around 39% over the past month. The current support zone sits near XRP's 200-day exponential moving average, giving it additional technical significance.