XRP Falls as Fed Freezes Rates... Retail Investors Flee Despite Positive News

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

According to crypto media outlet FXStreet on April 30 (local time), XRP is trading around the $1.37 mark following the Federal Reserve's decision to freeze benchmark interest rates in the 3.50% to 3.75% range amidst uncertainty surrounding peace talks between the U.S. and Iran. Federal Reserve Chairman 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 whether to implement limited monetary policy easing."

Participation by individual investors 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 lower level compared to the $10.94 billion recorded last July, suggesting a lack of investor confidence in sustaining price increases. In contrast, the XRP spot ETF saw an inflow of $3.59 million on Wednesday, an increase from $2.20 million the previous day, with cumulative inflows reaching $1.3 billion and average net assets at $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. The integration into the Japanese Rakuten ecosystem, allowing Rakuten Wallet users to convert points to XRP for payments, is cited as the reason. Rakuten Wallet recently added support for Stellar (XLM), Dogecoin (DOGE), and Shiba Inu (SHIB), but XRP shows differentiated integration through its direct payment function.

Technically, XRP is showing weakness, remaining below its 50-day, 100-day, and 200-day exponential moving averages at $1.41, $1.52, and $1.76, respectively. The Relative Strength Index (RSI) is around 45, and the histogram of the Moving Average Convergence Divergence (MACD) indicates that downward momentum is being maintained. Upside resistance is formed at the 50-day exponential moving average of $1.41, and a break above this level would encounter barriers at $1.51 and $1.52, leading up to the 200-day exponential moving average at $1.76.

The primary support level is formed at the weekly low of $1.35. If the price closes below $1.35, selling pressure will intensify, potentially expanding downside volatility to $1.30. The market is currently focusing on whether XRP can hold its support level amidst the Federal Reserve's policy direction and subdued individual demand.

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