The price of XRP is trading in a narrow range around the $2 level as the cryptocurrency market anticipates the U.S. Federal Reserve's upcoming Federal Open Market Committee (FOMC) meeting in February. Analyst Evan Aldo notes that XRP is currently moving sideways, showing signs of consolidation after a recent pullback from earlier highs. He suggests that the market has so far avoided a sharp breakdown, with the $2 area acting as a holding zone for investors awaiting broader market direction.
Aldo identified the February FOMC meeting, and specifically comments from Fed Chair Jerome Powell on inflation and interest rates, as a potential turning point. He warned that cautious or restrictive messaging from the Fed could pressure risk assets, including cryptocurrencies, as the sector remains sensitive to shifts in U.S. monetary policy. Conversely, a sustained move for XRP back above the $2.50 resistance level after the meeting would improve the asset's technical outlook.
Concurrently, technical analysis points to a longer-term upside target of $2.78, derived from the 1.618 Fibonacci extension level based on XRP's rally from December 2024 lows. Market commentator CW highlighted this level as the next major technical objective, though analysts note that such extensions often lead to consolidation rather than immediate continuation.
Adding an institutional layer to the narrative, U.S.-listed XRP spot ETFs recorded a net inflow of $8.72 million on January 8, equivalent to roughly 4.03 million XRP at prevailing prices. This data, cited by analyst DustyBC Crypto, is seen as a signal of renewed institutional interest following recent regulatory developments for the asset.
