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Powell’s February FOMC Meeting: The XRP Price Catalyst You Can’t Ignore

Powell’s February FOMC Meeting: The XRP Price Catalyst You Can’t Ignore

Author:
Coingape
Published:
2026-01-09 14:32:48
23
1

Jerome Powell steps to the podium—and XRP traders hold their breath. The Federal Reserve's February meeting isn't just about interest rates; it's a potential seismic event for crypto markets.

The Liquidity Lifeline (or Noose)

Every word from the Fed Chair gets dissected for hints about monetary policy. Hawkish tones could tighten financial conditions, squeezing risk assets like digital currencies. Dovish signals? That's rocket fuel for speculative capital searching for yield—often bypassing traditional finance entirely.

XRP's Unique Pressure Points

Unlike pure speculative tokens, XRP's value narrative ties closely to cross-border settlement and institutional adoption. Tighter policy may slow that institutional march, while easier money could accelerate it. The asset trades at the intersection of macro forces and its own lingering regulatory saga.

The Trader's Dilemma

Positioning for FOMC volatility requires steel nerves. Does one hedge, go all-in, or just watch from the sidelines? Many will try to game the announcement—a classic case of 'buy the rumor, sell the news,' often executed with the precision of a drunk dart thrower.

Powell's guidance won't just move Treasury yields. It will send a shockwave through every crypto portfolio. For XRP, caught between its utility promise and market whims, the Fed's decision isn't background noise. It's the headline act.

Crypto News

XRP is trading in a narrow range as markets look ahead to the U.S. Federal Reserve’s February policy meeting, with experts weighing whether interest rate signals from Fed Chair Jerome Powell could lift prices or trigger another pullback.

Analyst Evan Aldo said XRP is currently moving sideways, showing signs of consolidation rather than a clear trend. He said that the recent pullback has kept prices below earlier highs, but the market has so far avoided a sharp breakdown.

XRP holds range near $2.10

According to Aldo, XRP has found short-term stability around the $2 level after slipping from higher prices earlier this month. He said this area is acting as a holding zone as investors wait for direction from broader markets.

If conditions improve, Aldo said XRP could attempt a MOVE back toward the $2.40–$2.50 range in the coming weeks, which remains an important resistance area.

“I think the big thing that we want to do to kind of fit that narrative WOULD be break above and hold $2.50 right here, hold this 200 daily moving average and then eventually break up to these areas,” he said.

Fed meeting seen as turning point

Aldo said the February Federal Open Market Committee (FOMC) meeting could be decisive. He warned that Powell’s comments on inflation, rates, or financial conditions could pressure risk assets, including cryptocurrencies.

He pointed to past Fed meetings where cautious or restrictive messaging led to market pullbacks, adding that crypto remains sensitive to shifts in U.S. monetary policy.

He added, “So if you can do something like this and keep going upward, you’re in the beginning of February after that FOMC meeting, you’re still going upward, then that would fit the narrative to keep going.”

What would change the outlook

Aldo said a sustained move back above $2.50 after the February Fed meeting would improve the outlook for XRP. Holding above that level into early February would mean reversal and reduce the risk of further declines.

Until then, XRP is expected to remain range-bound NEAR current levels, with Powell’s policy signals likely to play a major role in determining the next move.

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