XRP Price Prediction – XRP Likely Headed to $4 If Fed Turns Dovish

Highlights:

• XRP is range-bound between $3.17 and $3 
• XRP could rally to $4 if Jerome Powell gives a dovish speech
• A rate hike could trigger a drop below $3

XRP was down by 2.92% when writing to trade at $3.07. At the same time, XRP trading volumes have dropped in the day, down by 14.46% to stand at $6.03 billion. Even as the price drops, the shrinking trading volumes are a positive indicator for XRP. That’s because it means even as the price goes down, holders are not selling their XRP. 

They are holding on to their XRP with the optimism that the price will rebound. This factor could show that XRP holds its value better than most altcoins if the downside persists and potentially rebounds better once the Bulls regain complete control. Besides, the macro environment supports a potential rally for XRP in the short to medium term. 

XRP Directionless Ahead of FOMC Decision

One of them is the upcoming interest rate decision in the US. Later today, the US Federal Reserve will reveal its take on interest rates. The markets agree that interest rates will remain unchanged despite recent pressure from President Trump. However, there is also consensus that outside of interest rates, the tone of Fed Chairman Jerome Powell will be more critical. If Powell takes a dovish tone, it is a factor that could see risk-on assets like XRP rocket during and after the speech at 14:00 ET. Multiple factors could support a dovish tone from the Fed, which XRP and other cryptocurrency holders are counting on.

Retail traders are shorting $BTC with 100x into the #FOMC today! 😅😂

What could go wrong….

God forbid MM just wiggle the tail… pic.twitter.com/NdUglwvnJV

— Crypto Seth (@seth_fin) July 30, 2025

Expectations of A Dovish Stand Could Send XRP Higher

One of these factors is that the US economy is navigating the tariff uncertainty quite well. After the initial debacle, US markets have rebounded to new highs, an indicator that the American economy is resilient. At the same time, the US has inked several deals with major economies, the latest of which is between the US and the EU. 

Under the agreement, the EU will not charge any tariffs on US goods, while also paying a 15% tariff. Such deals indicate that the tariffs could put the US in a better economic position globally. This could even trigger the Fed to surprise the markets by announcing a rate cut in the short term. In such a scenario, American cryptocurrencies such as XRP could rally to new highs in the short to medium term.

Trump says US-#EU agreement is the “biggest deal ever made.” The EU will purchase $750B of American energy. And the US made $80B+ in #tariff revenue through July2025. That helped US achieve a rare surplus of ~$27B in June. @NTDNews is tracking this. pic.twitter.com/2ooju2ndU1

— Kevin R Hogan (@KRHogan_NTD) July 28, 2025

XRP Resilience After Big Player Selloffs Points to Strong Demand

Another bullish aspect to XRP is that the price shows resilience despite recent selloffs by big players. For instance, XRP has come close to making new all-time highs this year. Even in the recent correction, it is holding up well above the $2 level. This is despite Chris Larsen moving more than $170 million worth of XRP. At the same time, Ripple has been pushing more XRP into the market.

So Chris Larsen, $XRP co-founder, moved 175M XRP to exchanges just as the price was pumping, around $3.60. 😬

Market reacted fast, XRP dropped -12%.🔴

On-chain peeps say $140M of that ended up on CEXs SOLD!

Not a great look… especially during a breakout. pic.twitter.com/ZjtucdVwsz

— Dem🔥 (@DemauxSOL) July 25, 2025

Earlier in July, Ripple released 1 billion XRP into circulation. While 700 million of it was re-escrowed, the remainder is still in the market, and has not triggered much downside pressure. This signals that a slight increase in demand, thanks to a risk-on sentiment across the market, could push XRP to new highs in the short term. 

Technical Analysis – XRP Consolidating Ahead of FOMC

XRP is currently consolidating between the $3.17 resistance and $3.00 support. If the FOMC decision is pro-risk, XRP could rally through the $3.17 resistance and potentially hit $4 in the short term.

On the other hand, if the FOMC decision triggers a risk-off rush, XRP could drop through the $3 support and reach prices as low as $2.50.