XRP Falls on Fed Rate Freeze... Retail Investors Flee Despite Positive News

▲ XRP/AI-generated image

The U.S. Federal Reserve's (Fed) sustained hawkish stance and a decrease in demand from individual investors are pushing XRP's price toward a weekly low of around $1.35.

According to cryptocurrency media outlet FXStreet on April 30 (local time), XRP is trading around $1.37 following the Federal Reserve's decision to freeze the benchmark interest rate in the 3.50% to 3.75% range amid uncertainty surrounding peace talks between the U.S. and Iran. Federal Reserve Chair Jerome Powell stated, "The Federal Open Market Committee will continue to assess the impact of high oil prices and tariff shocks on inflation before deciding on limited monetary policy easing."

Individual investor participation showed a decline. The volume of perpetual futures open interest decreased from $2.52 billion the previous day to $2.45 billion. This is a low level compared to the $10.94 billion recorded last July, suggesting a lack of investor confidence in maintaining price increases. In contrast, $3.59 million flowed into XRP spot ETFs on Wednesday, an increase from $2.20 million the previous day, bringing the cumulative inflow to $1.3 billion and average net assets to $1.04 billion.

On-chain data analysis firm Santiment analyzed that optimistic sentiment for XRP on social media has reached its second-highest level in the past two years. This is attributed to the integration with the Japanese Rakuten ecosystem, allowing Rakuten Wallet users to convert points into XRP for payments. While Rakuten Wallet recently added support for Stellar (XLM), Dogecoin (DOGE), and Shiba Inu (SHIB), XRP demonstrates differentiated integration through its direct payment functionality.

Technically, XRP is showing weakness, remaining below its 50-day, 100-day, and 200-day exponential moving averages (EMAs) at $1.41, $1.52, and $1.76, respectively. The Relative Strength Index (RSI) is around 45, and the Moving Average Convergence Divergence (MACD) histogram indicates sustained downward momentum. Upward resistance is formed at the 50-day EMA of $1.41, and if this level is breached, there are barriers at $1.51 and $1.52, leading up to the 200-day EMA at $1.76.

The primary support level is established at the weekly low of $1.35. If the price settles below $1.35, selling pressure will intensify, potentially extending downward volatility to $1.30. Currently, the market is focusing on XRP's ability to hold its support level amidst the Federal Reserve's policy direction and subdued retail demand.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*