XRP Price Forecast – XRP Could Rally to $2.50 on Dovish Fed

Highlights:

• XRP is gaining after rallying off $2.13 support
• Rally off the $2.13 support puts $2.18 in focus
• The upcoming FOMC statement could push XRP through $2.18 to $2.50 

XRP has been in the green for the better part of today. At press time, XRP was up by $2.14, trading higher by 2.55%. The spike came as investor optimism increased, driven by the latest developments in the world economy and the activities of central banks. As one of the market’s most closely tracked digital currencies, XRP’s growth demonstrates the optimism emerging across traditional and digital assets.

XRP Bullish Sentiment Rises on US-China Trade Talks

Progress on the trading relationship between the United States and China is one of the primary drivers of this most recent rally in XRP. The two economic superpowers are meeting in Switzerland this weekend to negotiate a prospective trade agreement. Strong ties between the US and China would benefit global economic growth while decreasing uncertainty and would be favorable conditions for speculative investments like XRP.

JUST IN⚡:

CHINA'S COMMERCE MINISTRY CONFIRMS: ENGAGEMENT WITH U.S. ON TRADE IS IN THE WORKS.

🇨🇳🤝🇺🇸

WE ARE EXPECTING A TRADE DEAL ANYTIME SOON . pic.twitter.com/P4IZ0bZn4E

— Marzell (@MarzellCrypto) May 7, 2025

Expected Federal Reserve Policy Shift Could Add Fuel to XRP Price

Like other factors around the globe, the U.S. Federal Reserve’s actions are also intensely contributing to the uplift of the markets. The Fed has announced aggressive bond purchasing, which indicates a shift to softer monetary policy. The Fed’s economic stimulus injects liquid capital into the economy and fosters a risk appetite across equities and crypto assets like XRP. The Fed announcing an interest rate cut could boost XRP further. If that happens, it would further bolster liquidity in the system and push XRP to new highs. 

It’s FOMC day in a few hours, here's what you need to know:

Markets predict a 4.4% chance of a rate cut today.

This means the odds of a rate cut are extremely low and Jpow will likely keep Interest rates unchanged.

Watch your positions anon pic.twitter.com/AkPbPbjF6i

— Nosh ☯︎ (@0xnosh) May 7, 2025

Ripple’s Utility Strengthens XRP’s Long-Term Appeal

XRP’s utility in the market is also on the rise. Ripple’s blockchain-powered payment infrastructure is integrated with XRP, the native asset of the XRP ledger. The network seeks to enhance the international money transfer system by providing a swift and affordable alternative to the traditional SWIFT system, which entails many intermediaries and transaction delays.

The digital asset #XRP has been recorded in the official US Gov FEDERAL REGISTER with 172 mentions in vol 90, No35, Feb24.
"#XRP Ledger differentiates itself from other digital asset networks in that its stated primary function is transactional utility, not store of value."… pic.twitter.com/qJ5nOqQW8M

— 🌸Crypto Eri ~ Carpe Diem (@sentosumosaba) March 2, 2025

Thanks to Ripple’s platform, which utilizes both XRP and Ripple-backed USD stablecoins, cross-border transactions can be completed within seconds and at a remarkably low cost. This capability makes XRP appealing to banks and fintech companies seeking to optimize global payment systems, thereby increasing the asset’s credibility among institutional investors.

Possible XRP-ETFs on the Horizon – A Bullish Signal

There is growing speculation that an XRP-ETF could be on the horizon. Investor Trevor Jennewine notes increasing interest from retail and institutional investors, particularly for assets like XRP with proven value. The approval of spot XRP ETFs could serve as a catalyst. These funds would enable broader trading of XRP, marketing it to non-crypto-savvy investors and greatly expanding market accessibility. 

🚨 BREAKING: #XRP #ETF Filing Alert! 🚨
📄 ETF Opportunities Trust – REX-OSPREY™ XRP ETF
📆 Effective Date: May 14, 2025
📈 New door opens for XRP on Wall Street!

Today’s filing positions $XRP alongside major crypto players:
💥 $TRUMP $ETH $BTC $SOL $BONK $DOGE pic.twitter.com/BAnhIsF1uC

— XRPArmy (@Mullen_Army) May 6, 2025

Jennewine highlighted Bitcoin’s case study in detail. Following January 2024’s approval of spot Bitcoin ETFs, BTC skyrocketed over 200%. He foresees XRP reaping similar rewards if ETFs associated with it are approved. Of note is that the newly appointed SEC chair, Paul Atkins, is perceived as more lenient towards crypto than his predecessor, thereby improving the chances of such approvals.  

High XRP Projections Could Drive FOMO

XRP’s projected trajectory remains bullish in the long-term outlook. Adopting a more aggressive stance, Jennewine predicts the digital asset will reach $7.50 by early 2035, citing increased adoption from banks and payment processors and greater interest from investors as primary drivers. The digital asset’s projection signals nearly a 260% increase from current levels, suggesting annual returns of approximately 13.5%.

Technical Analysis – XRP Price Bounces Off Intra-Day Support

XRP has rallied off the $2.13 support today. If bulls sustain momentum, XRP could rally to $2.18 in the short term.

On the other hand, if XRP bears push XRP through the $2.13 support, then a correction to $2.08 could follow. With the possibility of the Fed cutting rates high, XRP could be headed to $2.18 or higher.