XRP Price Crossroads: How February's FOMC Signals Could Shape the Next Move

Ripple’s token XRP (XRP) is currently consolidating near the $2.12 mark as investors brace for the Federal Open Market Committee’s upcoming policy decision. The February FOMC meeting has become a focal point for traders, with expectations that Fed Chair Jerome Powell’s commentary on inflation and monetary stance could either catalyze an upside breakout or trigger renewed selling pressure in risk assets.

Consolidation Phase: XRP Navigates Critical Support Levels

XRP has established a holding pattern around $2, acting as a critical support zone amid broader market uncertainty. Recent price action suggests the token is building a foundation rather than experiencing directional momentum, with the $2.12 level serving as an important reference point for near-term traders.

The technical picture remains nuanced. Analysts point out that the $2.40–$2.50 resistance band represents the next meaningful hurdle. For a sustained recovery narrative to emerge, XRP would need to break decisively above and maintain the $2.50 level, particularly through the 200-day moving average—a key technical milestone that would signal renewed bullish conviction.

The FOMC Wild Card: Monetary Policy’s Outsized Impact

The February FOMC gathering looms large for cryptocurrency markets. Powell’s tone on financial conditions, interest rate expectations, and inflation trajectory could prove decisive. Historically, restrictive or cautious messaging from the Fed has prompted immediate pullbacks across risk-sensitive assets, with cryptocurrencies showing heightened sensitivity to such policy shifts.

Should Powell’s commentary prove dovish or accommodative, market sentiment could shift dramatically. Conversely, hawkish signals could reinforce downward pressure on XRP and similar assets. This binary outcome makes the FOMC meeting a potential turning point rather than a routine policy event.

Path Forward: The Post-FOMC Test

The critical scenario would unfold if XRP maintains upward momentum through and beyond the February FOMC announcement. Holding above $2.50 into early February—and continuing higher despite the policy decision—would fundamentally alter the near-term outlook from range-bound consolidation to potential directional strength.

Until that threshold is decisively broken, XRP is likely to remain confined within its current trading range, with Powell’s policy signals functioning as the primary catalyst for the next significant move.