XRP Price at Crossroads: September Fed Cut vs Tariff Inflation
September could prove pivotal for XRP price. The Fed’s Beige Book flags tariff-driven inflation and softer hiring, pushing futures to price a 96% chance of a rate cut. A Fed cut would weaken the dollar and boost liquidity into risk assets. XRP price may retest 3.1–3.2 USD resistance and potentially climb to 3.4 USD. Conversely, persistent inflation could delay easing, capping upside and risking a drop below 2.7 USD toward 2.5 USD.
Technically, XRP is consolidating between 2.8 and 3.1 USD after July’s breakout above 3.6 USD. Narrowing Bollinger Bands and a 20-day SMA at 2.93 USD mark a coil pattern. Support near the lower band at 2.73 USD and resistance near 3.13 USD set clear levels for a volatility surge. Macro triggers in September will likely decide the next breakout direction.
Traders should monitor Fed communications and tariff developments. A rate cut would favour a bullish rally in XRP price. If inflation persists, XRP could face renewed selling pressure. Prepare for heightened volatility and apply strict risk management.
Bullish
The market currently prices a 96% chance of a September Fed rate cut, pointing to increased liquidity and dollar weakness—historical catalysts for crypto rallies. Past easing cycles in 2020 and 2023 saw XRP and other tokens surge when the Fed shifted dovish. Technical consolidation between 2.8–3.1 USD, plus narrowing Bollinger Bands, suggests an imminent breakout. While tariff-driven inflation could delay easing, the strong probability of a cut tilts the balance toward a bullish outcome. Traders should expect higher volatility but can anticipate XRP price breaking above key resistance in the short term. Long-term, sustained Fed accommodation could underpin further gains, reinforcing a bullish outlook.