In the bustling crypto market, XRP has been riding a wave of optimism, spurred by dovish signals from the Federal Reserve and the ripple effects of Ripple’s ongoing legal saga. On August 23, the digital asset surged in trading, climbing to a peak of $3.09, as institutional investors flocked in droves. This ascent was largely attributed to comments made by Fed Chair Jerome Powell at the Jackson Hole symposium, hinting at potential rate cuts in September. Such monetary easing typically encourages risk-taking, making cryptocurrencies an attractive proposition for investors. This trend has also been observed in other digital assets, as detailed in our recent article on Crypto Booms as Fed Goes Dovish: Here’s What It Means for Ethereum, Solana and Dogecoin.
Market Momentum and Institutional Moves
XRP’s recent performance is a testament to the shifting tides in the crypto landscape. Trading volumes soared above the norm, with a staggering 58.8 million tokens exchanged within a 24-hour window, significantly outpacing the usual 33.2 million. This frenzied activity underscores a robust demand, particularly around the psychological $3.00 mark—a level that has been tested and reaffirmed with a substantial turnover of 46.6 million tokens at 11:00. Analysts are now eyeing ambitious targets, with some suggesting XRP could touch $5 to $8 if it manages to cleave through the current resistance band of $3.08 to $3.09.
“There’s a palpable sense of anticipation in the air,” remarks crypto analyst Mia Chen. “The patterns we’re observing—particularly the double-bottom and symmetrical triangle formations—are classic indicators of potential breakout scenarios. If XRP breaches the $3.30 resistance, we could see a significant upward trajectory.”
Regulatory Clarity and Chart Patterns
The recent clarity brought about by Ripple’s litigation outcome has also played a pivotal role in bolstering institutional interest. With a clearer regulatory path, institutional players feel more confident in entering the fray, driving up both demand and price. Moreover, on-chain activities have been buzzing with whale wallet accumulations and settlement volumes spiking 500% to 844 million earlier in the week—clear signs of increasing confidence in XRP’s long-term prospects.
Technical indicators present a mixed yet intriguing picture. While resistance is firm around the $3.08–$3.09 range, support at $3.00 appears resilient. However, the market’s next big test will be whether XRP can maintain these support levels during profit-taking phases. The broader correlation with equity markets, which have been lifted by lower yields, also plays into the narrative, as cross-asset flows into digital currencies continue to surge.
The Fed Factor and Future Prospects
The Federal Reserve’s monetary policy, particularly the anticipated rate cuts in September, remains a critical factor in shaping XRP’s trajectory. A confirmation of such a move would likely sustain the current inflow into risk assets, bolstering not just XRP but the wider crypto market. This dovish stance has also led to optimistic predictions for other cryptocurrencies, as explored in Crypto Founder Predicts Ethereum Price To Touch $20,000 As Fed’s Powell Turns Dovish. However, traders are keenly watching for any signs of whale activity or shifts in on-chain settlement volumes that could indicate changes in market sentiment.
Despite the current bullish outlook, questions linger about the sustainability of this rally. Can XRP maintain its momentum in the face of profit-taking and potential market corrections? Will the Fed’s policies continue to favor risk assets over the long haul? These uncertainties add layers of intrigue to an already dynamic market scenario.
As XRP consolidates its gains and looks to the future, the cryptocurrency world watches with bated breath. The coming weeks promise to be anything but dull—filled with potential breakthroughs, regulatory developments, and the ever-present volatility that makes crypto trading both exhilarating and unpredictable.
Source
This article is based on: Fed Dovish Turn Lifts XRP Toward $3.10, Analysts Eye $5–$8 Targets
Further Reading
Deepen your understanding with these related articles:
- Fed Instructs Banks to Adopt Crypto Without Fear: Bitcoin Hyper to Pump
- XRP Price Faces Third Bearish Setup in a Week—What Traders Should Watch
- Bitcoin’s Jackson Hole Test: How Hard Could Powell’s Address Hit BTC Prices?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
