XRP Price Prediction – XRP Likely Headed Below $2 Ahead of FOMC

Highlights:

• XRP bears are in control ahead of a major macroeconomic decision 
• XRP price could drop to $1.50 if the $2 support is broken
• XRP weighed down by upcoming legal decision and the FOMC policy statement

XRP is bearish today, reflecting the lack of buying momentum across the market. When writing, XRP had declined by 4.08% to trade at $2.10. This reflects the ongoing risk-off approach in the market ahead of the Federal Open Market Committee (FOMC) set for tomorrow.

Upcoming Fed Decision Weighs Down on XRP Price and Other Cryptocurrencies

XRP, like many of its counterparts, has become intertwined with the macroeconomic factors surrounding riskier assets. With inflation data mixed alongside oscillating economic growth metrics, the Fed’s pivot toward easing has not been viable, thereby rendering investors directionless. The consequences for the cryptocurrency market are severe; a rate cut could lead to a bull run for XRP. However, a pause or an increase could lead to a further exodus from speculative assets.

$xrp I would not be surprised to see a big dip below $2 right after the fed rate meeting starts even though everyone knows they are going to cut. One good shake of the trees to take out longs. Then….we start back up. Just my opinion.

— Junk Wax (@JunkWax911) May 6, 2025

Renewed Political Resistance to Crypto in the United States Affects XRP

XRP could face further bearish pressure from renewed political hostilities towards cryptocurrencies in the United States. Hostile views toward crypto are resurging among U.S. lawmakers, slowing down the pace of enthusiasm from investors. Several U.S. states on the verge of adopting Bitcoin as part of their strategic reserves have now put such plans on hold.

Even within the federal government, skepticism is more profound. This is evident in Democrats’ seeming opposition to the Stablecoins bill. 

New @FenzLabs analysis: Political Risks in Blocking Crypto Legislation

Democratic opposition to the stablecoin bill reveals tension between regulatory concerns and political consequences in tech policy.

Warren cites AML provisions and UAE connections as justifications, while… pic.twitter.com/7yibfC3Xho

— Fenz AI (@fenzlabs) May 5, 2025

XRP’s Fate Relies on the Ripple Case’s Outcome

Besides these macro factors, XRP investors are waiting on the sidelines for the outcome of the Ripple case. The protracted legal dispute involving Ripple, the company behind XRP, and the SEC has become the mark of XRP’s price and institutional adoption.

The SEC has set a closed meeting for this week, and there is speculation that the agency might vote to rescind the appeal made in the Ripple case. An end to the case could pave the way for XRP-ETFs, which would significantly boost XRP and drive the price to new highs.

And when the SEC case ends institutional money comes onto the network. XRP will be the only asset that has been designated as not a security by a judge and will have legal clarity to operate in the space. Then moon 👍

— Steven Smollensky (@Stevie_Smozz) May 6, 2025

Analysts Predict XRP Could Surge to $10 or More

Analysts are already turning bullish on XRP. Leading market analyst CryptoInsightUK has claimed that during this cycle, XRP will reach $10 at peak and rise alongside favorable conditions up to $20-30. His predictions factor in trends of asset rotation, the history of market cycles, and other macroeconomic elements.

Crypto Pundit Says XRP To $10 Is Just The Start

In his latest video, the market commentator known as CryptoInsightUK laid out a multi-step argument for why XRP could “very realistically go to $10 plus this cycle — and potentially into the $20-to-$30 range.” The analyst combined… pic.twitter.com/t7ToxP8tmZ

— CRYPTO MINING FIRM (@MININGCRYPTOLTD) May 5, 2025

During his recent review, CryptoInsightUK highlighted that certain hedges, such as gold and equities, have far outpaced their values in 2017, which can be attributed to currency debasement. Gold and stock indices have outperformed since 2017. These movements imply investors are attempting to price in long-term inflation, and crypto may be the next asset class poised to capitalize on this trend.

Technical Analysis – XRP Price Trading In A Bearish Channel

XRP is currently in a bearish trend, with no clear support. If the current selloff continues, XRP could drop below $2 in the short term. 

Such price action would focus prices around $1.50 in the short term. On the other hand, if there is a bullish reversal, possibly due to a US rate cut, XRP could rebound to $2.10, a major short-term resistance level. 

Recap

Though facing some short-term challenges, including interest rates and political tensions, XRP is waiting for the results of this week’s SEC meeting. Investors will be watching closely, poised to take advantage of a pivotal regulatory shift that could catalyze XRP’s subsequent breakout.