XRP’s Pivotal Moment at Key Support
XRP is currently testing a critical technical juncture after being rejected near the $2.67-$2.70 resistance zone. Market data indicates the price has fallen to test the lower end of its recent trading range, with the $2.60-$2.63 area now acting as a crucial support band.
This price action occurred alongside a significant surge in trading volume, which initially suggested growing trader interest but ultimately reflected selling pressure as the breakout attempt failed. The failure to hold above $2.67 has introduced near-term downside risk, with technical indicators suggesting a loss of bullish momentum. Analysts note that a sustained break below the $2.60 support level could open the door for a deeper pullback toward $2.55 or even $2.31-$2.35.
The Fed’s “Hawkish Cut” and Its Market Impact
The primary catalyst for the broader market pullback was the Federal Reserve’s interest rate decision on October 29, 2025. While the Fed delivered a widely anticipated quarter-point rate cut, bringing the benchmark rate to a range of 3.75% to 4.00%, the market’s reaction was dominated by the cautious tone from Chair Jerome Powell.
Powell stated that a subsequent rate cut in December was “not a foregone conclusion. Far from it”. This “hawkish cut” dynamic—providing accommodative action while tempering expectations for future easing—disappointed traders who were hoping for a more definitive dovish pivot. This shift in expectations triggered a classic “sell-the-news” reaction across risk assets, including cryptocurrencies.
Market Outlook and Key Levels to Watch
Moving forward, traders are closely monitoring several key factors that will determine XRP‘s short-term trajectory. The immediate focus is squarely on whether the price can stabilize and hold the $2.60-$2.63 support zone. A successful bounce from this area, coupled with rising volume, could validate the ongoing accumulation phase and set the stage for another attempt to break above $2.70.
Conversely, if selling pressure persists and this support band fails, the next significant support levels to watch are $2.55 and $2.5120. The market’s direction will also be heavily influenced by the evolving narrative around the Federal Reserve’s policy path and any shifts in institutional capital flows.
