XRP Price Prediction – XRP Could Soon Trade at Under $1

Highlights:

• XRP drops 3.7% to $1.19 as volume falls 47%, reflecting cautious trading ahead of FOMC.
• BOJ rate hike to 1% sparks yen carry trade concerns, pressuring XRP and broader crypto risk appetite.
• XRP fails $1.30 resistance, with downside risk toward sub $1 levels increasing.

XRP (XRP) is in a slight intraday correction, down 3.71% to $1.19. Volumes are down intraday as well, down 46.94% to $1.66 billion. The drop in trading volumes could mean that long-term holders are not selling. However, it also means that new investors are cautious about buying XRP. This is likely due to the slight weakness the market has shown intraday. Looking ahead, XRP could drop in the short term.

BOJ Rate Hike Pressures XRP Price and Broader Crypto Market Sentiment

One factor likely to drive the short-term correction is news from Japan. Yesterday, the Bank of Japan announced that it was hiking rates from 0.75% to 1%. The BOJ’s move has shaken markets because it could upend the Yen carry trade. For decades, investors took advantage of Japan’s low interest rates to borrow cheap Yen and invest the money in global capital markets.

🇯🇵 THE MACHINE THAT FUNDED EVERY RALLY IS BREAKING

The Bank of Japan raised rates to 1%, the highest since 1995.

For decades, cheap yen funded global risk.
That era is ending, one hike at a time.

Markets shrugged today. It was priced in.

The next surprise won't be… pic.twitter.com/crn3VMVS2b

— Merlijn The Trader (@MerlijnTrader) June 16, 2026

This is part of the reason stocks and other risk-on assets have been in a multi-decade bull run. Now that the Yen carry trade could be unwinding, markets are panicking as the cheap flow of capital could stop.

Cryptocurrencies, being a high-risk asset class, are likely to feel the impact the most. That’s because when borrowing at high interest rates, investors are likely to start considering investments with more sustainable risk-reward numbers. For altcoins like XRP, this could mean further short- to medium-term corrections as capital seeks safer bets. 

Upcoming FOMC Keeping Cautious Traders Away From XRP

Outside of news from Japan, XRP is down today amid the ongoing FOMC. The FOMC meeting started yesterday and concludes today, June 17. An interest rate decision is expected later today at 2:00 PM EST. Given the volatility that comes with interest rate decisions, day traders are likely to stay away from cryptocurrencies. This explains why XRP trading volumes are sharply low intraday, and the price is showing weakness.

HAPPY FOMC DAY 🫡

🇺🇸 THE FED WILL OFFICIALLY ANNOUNCE ITS INTEREST RATE DECISION TODAY AT 2 PM ET!

IF RATE < 3.50% → MARKET PUMPS
IF RATE = 3.75% → MARKET STAYS FLAT
IF RATE > 4.00% → MARKET DUMPS

ALL EYES ON THE RELEASE TODAY 2:30PM pic.twitter.com/HpOI0515Bw

— Crypto Tony (@CryptoTony__) June 17, 2026

Investors will likely come back after the interest rate decision. If the Federal Reserve announces an interest rate increase to tame inflation, XRP and other risk-on assets could plunge further. That’s because, as capital becomes expensive, investors may opt to hold safe assets such as bonds and still earn a reasonable return. 

XRP Facing Pressure From Altcoins with Stronger Narratives

Besides an increasingly uncertain macro environment, XRP is facing significant pressure within the cryptocurrency market. Despite the hype, XRP has struggled to attract new investment, especially from institutional players. This is mainly because it is being overshadowed by cryptocurrencies that have stronger narratives.

Such narratives include AI and real-world asset tokenization. That said, XRP still trades in line with Bitcoin. If Bitcoin continues to record gains, as seen over the past week, it could lift the broader market with it. XRP, one of the major cryptocurrencies, could benefit from such a marketwide uptick. 

XRP Price Technical Analysis: Bears Stay in Control After Failed Rebound

XRP bulls have recently made an attempt at a rebound following the double bottom at $1.09. However, the rebound failed at $1.30, a previous major support level that has now become resistance. 

Failure at $1.30 is confirmation that bears are firmly in control. If the sell-off continues and the $1.09 support level is broken, XRP could drop to prices below $1 in the short term. However, if buying volumes increase and XRP rallies past the $1.30 resistance, a rally to $1.54 could follow on the day. Of these scenarios, a drop below $1 is more likely. This is due to the rising interest rates in Japan and the persistent inflation in the US.