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Highlights
- XRP's price is range-bound, with a potential breakout direction uncertain ahead of the Fed meeting.
- The liquidation risk for long positions is high, with $60 million worth of positions at risk if XRP's price drops 4%.
- Key levels to watch for XRP include $2.41, $2.60, and $3.11; bearish targets include $1.87-$1.56.
XRP price has been trading within a tight consolidation range for the last three months, and investors are now eyeing the next catalyst that will spark a breakout. The highly-awaited breakout is looming with nearly $60M in long positions on the verge of liquidation if Ripple records a 4% gain from its current price. Today’s Fed meeting and Jerome Powell’s speech may catalyze this move.
Liquidation Risk Amplifies for XRP Traders
XRP price prediction remains flat as the token is stuck in a range, extending from $2.06 to $2.60. Typically, range-bound movement attracts more capital from investors attempting to catch a breakout trade. The same is the case for Ripple’s XRP, as confirmed by data from Coinglass. Nearly $60 million worth of bulls will face liquidation if XRP price drops just 4% and sweeps $2.063.
Will XRP drop lower or climb higher ahead of the key fed meeting?
What to Expect From Fed Meeting Today
The market consensus is that the Federal Reserve Chariman Jerome Powel and its members will keep the target rate unchanged, in the 4.250% to 4.50% range. This outcome is already priced in. Despite this, there will be volatility that could cause short-term pain on both sides as noted above.
All eyes are on the Federal Open Market Committee (FOMC), where any change in Powel’s tone or guidance for the future could impact XRP, which is a risk-on asset like the stock or the crypto markets.
If the Fed hints at easing or rate cuts, it could cause Bitcoin price rally that could help alleviate the bearish pressure on altcoins, including XRP. Let’s explore XRP price prediction and key levels to watch using technical analysis.
XRP Price Prediction & Analysis Ahead of Fed Meeting
XRP price has traded within the $2.06 to $2.60 for three months, and about 70% of the volume was traded in this range. Interestingly, the liquidation risk for long positions is at the range low of the aforementioned value area.
The outlook for altcoins remains bullish, with $2.41 as the first key hurdle, also known as High Volume Node (HVN). Beyond this, XRP price needs to overcome the range high at $2.60 to reach the next HVN at $3.11.
On the other hand, weakness in Bitcoin (BTC) due to the Fed meeting could invalidate the above bullish outlook. A breakdown of $2.06 could catalyze a selling spree from long positions. In that case, the Low Volume Node (LVN), XRP price could slide swiftly from $1.87 to $1.56.
Frequently Asked Questions (FAQs)
1. What is the current situation with XRP's price?
2. What is the liquidation risk for XRP traders?
3. How might the Fed meeting impact XRP's price?
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