XRP Price Declines as Fed Rate Fears Weigh on Sentiment
Ripple (XRP) price is down 1.55% to $1.40 on Monday, underperforming a slightly negative broader market, primarily driven by macro-induced risk-off sentiment.
The total cryptocurrency market capitalisation contracted by 2.86% to $2.69 trillion, while Bitcoin and Ethereum remained relatively stable, trading at $79,480 and $2,494, respectively.
Broader market pressure stemmed from renewed fears of a US Federal Reserve rate hike, triggered by a strong US jobs report on September 4.
The primary driver is a market-wide dip. Bitcoin fell 0.73%, and the total crypto market cap dropped 0.70% after a strong U.S. jobs report on September 4, which showed payrolls rising by 162,000 versus a forecast of about 53,000.
This caused traders to raise bets on a Federal Reserve rate hike, increasing the probability to about 58%. As a high-beta asset, XRP saw amplified selling pressure in this risk-off move.
XRP’s drop is more about macro sensitivity than internal issues. Its performance is currently tied to traditional market fears about interest rates.
The August Consumer Price Index (CPI) report on September 11. A hotter-than-expected print could sustain pressure, while a softer one might relieve it.
Technically, XRP faced rejection at the $1.43–$1.46 resistance level, a zone it has tested and failed to break through multiple times since late August.
Concurrently, positive catalysts, such as Ripple’s new university sponsorship deal, failed to generate significant buying momentum, indicating market indifference to non-utility announcements.
The price action reflects a consolidation phase after August’s rally, with overhead supply capping upside moves in the absence of fresh, compelling news.
The immediate trend is neutral to bearish within a range. The key support confluence is between the 200-day average of $1.39 and the recent low near $1.38.
Holding this area is crucial for bulls aiming to retest the $1.43 resistance.
The most significant near-term event is the U.S. Senate cloture vote on the CLARITY Act, scheduled for September 15, which could provide regulatory clarity.
Direction is likely to remain choppy and macro-dependent until a clear break occurs above $1.46 or below $1.38. A sustained break below $1.38, which could trigger a deeper pullback toward the next major support at $1.26, as noted by several analysts.
XRP’s decline is a function of broader crypto market weakness driven by shifting macro expectations, compounded by its own technical overhead resistance. The lack of a strong, positive coin-specific driver leaves it vulnerable to further beta-driven moves. XRP Ticks Up on Regulatory Clarity, Robust ETF Inflows
