XRP tumbles as US PCE delays and government shutdown risks raise macro uncertainty
XRP fell sharply on January 30, trading around $1.75 after losing key support at $1.86–$1.87 and reacting to rising macroeconomic uncertainty. The move followed the Federal Reserve’s decision to hold interest rates at 3.5–3.75%, and investor concern about delayed US economic data — notably the Personal Consumption Expenditures (PCE) inflation gauge — which remains a month behind until April due to earlier government shutdowns. The combined October–November PCE showed core inflation at 2.8% year‑over‑year and 0.2% month‑over‑month. Near‑term technicals are bearish: a daily close below $1.80 could open a drop toward $1.60–$1.50, while a recovery requires a daily close above $1.83. Ongoing political risks, including the potential expiry of the current funding resolution on January 30 and renewed shutdown risk, may further disrupt economic data and fuel volatility. Traders should expect elevated XRP volatility in the near term, with price direction tied to macro updates and political developments.
Bearish
The article ties XRP’s sharp decline to rising macroeconomic uncertainty: delayed US inflation data (PCE), Fed rate guidance, and the looming risk of a government shutdown. Those factors reduce investor confidence and increase risk aversion, which typically translates into selling pressure on risk assets including altcoins like XRP. The technical levels cited ($1.80 daily close as a key support threshold; $1.83 needed for recovery) reinforce a near‑term bearish outlook: a daily close below support would likely trigger stop losses and momentum selling toward $1.60–$1.50. Historically, crypto markets have reacted negatively to macro uncertainty and data disruptions (for example, market selloffs around unexpected Fed signals or geopolitical funding standoffs). In the short term, expect elevated volatility and downward pressure until clearer inflation prints or political resolution reduces uncertainty. Over the longer term, fundamentals for XRP (product adoption, legal/regulatory developments) could counteract temporary macro-driven weakness, but absent positive macro news or technical reclaim of resistance levels, near‑term bias remains bearish.