XRP Price Prediction: FOMC Cut, $2 Support, Escrow Outflow, Suggest Rebound for Ripple
As institutional flows increase, liquidity improves, and ETF euphoria counteracts ongoing resistance overhead, XRP enters December on a stro
Quick overview
- XRP has shown resilience by reclaiming the $2 threshold after a significant market selloff in November.
- The token's recovery is supported by strong institutional flows and a growing interest in XRP ETFs, which have seen substantial net inflows.
- Despite positive momentum, XRP faces resistance around the $2.50 and $3 levels, which are critical for establishing a bullish trend.
- Macro factors, including anticipated Federal Reserve rate cuts, may further bolster XRP's market position as it enters December.
Live XRP/USD Chart
As institutional flows increase, liquidity improves, and ETF euphoria counteracts ongoing resistance overhead, XRP enters December on a stronger footing.
XRP Rebuilds Stability After November’s Market Shakeout
The final weeks of November brought a wave of volatility that shook global markets, dragging down both cryptocurrencies and equities amid a broad retreat from risk. XRP was no exception. The token fell sharply during the worst of the selloff, sliding beneath the $2 level at the height of liquidation pressure. Yet the move proved short-lived. As volatility cooled and liquidity gradually returned, XRP quickly reclaimed the $2 threshold, signaling that long-term participants were still willing to accumulate despite the turmoil.
That rebound was significant because it arrived after one of the steepest drawdowns XRP had experienced since late summer. Months of gradual downward drift had already pulled the token toward the $1.50 zone before capitulation selling accelerated in mid-November. Nearly half of XRP’s market value evaporated before buyers regained control. The decisive bounce from long-term demand regions reinforced the idea that structural support remains intact even during broader market corrections, and that the token’s underlying investor base had not been shaken out.
Technical Structure Points Toward Strength—But Resistance Remains Heavy
XRP’s recovery owes much to the preservation of key higher-timeframe support. The ability to remain above the 20-month Simple Moving Average has helped stabilize market psychology, particularly because this trend indicator has historically marked accumulation zones during multi-month corrections. Each time the token has tested this level, deep-pocketed buyers have stepped in, and the same pattern unfolded again during November’s decline. Keeping that level intact has shifted the balance modestly back toward demand.
Ripple Chart Monthly – The 20 SMA Is Holding As Support
The first major test on the upside sits near the $2.50 region, an area where sellers have consistently reasserted pressure. Beyond that, the psychological and structural milestone remains the $3 level. A sustained break and close above $3 would carry long-term significance, indicating that the broader consolidation phase may be resolving into a new bullish cycle. Traders view this level as the gateway to higher-timeframe continuation.
Ripple Chart Daily – The 20 SMA Stopping the Upside Momentum
On the lower-timeframe charts, however, XRP faces near-term friction. The token remains capped below the 50-day Simple Moving Average, which has turned into a stubborn ceiling for price action. As long as this moving average rejects upside attempts, the risk of another pullback toward $2—or even a retest of the deeper $1.50 support range—remains on the table. The macro environment will play an important role in determining which direction dominates from here.
Macro Forces Offer Fresh Support For Risk Assets
The timing of XRP’s recovery coincides with a shift in expectations around U.S. monetary policy. Markets widely anticipate another Federal Reserve rate cut this week, with policymakers expected to deliver a 25-basis-point reduction. Lower rates generally support risk assets, including cryptocurrencies, by improving liquidity conditions and encouraging capital rotation back into higher-beta sectors.
However, the tone of the Fed’s forward guidance will be just as important. A message indicating a pause could introduce short-term hesitation. But if the central bank signals that additional easing is likely throughout 2025 and 2026, digital assets would benefit from a more durable tailwind. Political developments add further complexity. Reports that Kevin Hassett could replace Jerome Powell—paired with his well-known preference for aggressive rate cuts—have added another speculative layer to the rate outlook.
Softening labor data reinforces the dovish case. Recent releases showed a 32,000 decline in ADP employment, a surge in Challenger layoffs, and a delayed but lukewarm September payrolls report. While not disastrous, these indicators point toward a cooling labor market, giving policymakers more room to loosen policy if needed.
Ripple’s Escrow Movement Sparks Market Attention
Ripple recently released 250 million XRP from escrow, an event that immediately captured market attention given the token’s delicate position. Historically, such releases have created short-term uncertainty around supply dynamics. This time, however, growing institutional participation appears to be absorbing available supply. With buyers increasingly defending the $2 region, traders are now watching to see whether liquidity tightening could accelerate a push toward the $2.50 resistance level.
ETF Expansion Continues To Transform XRP’s Market Profile
One of the most influential developments strengthening XRP’s outlook is the rapid expansion of ETF exposure. U.S. spot XRP ETFs have now logged fifteen consecutive days of net inflows—one of the longest accumulation streaks since the products launched. This steady demand has provided a sturdy base during a period of volatility.
Momentum accelerated in late November with several major product launches. Grayscale unveiled multiple new offerings—including the XRP and Dogecoin Trusts—following fresh approval from U.S. regulators. The speed of these approvals is unusual for any altcoin and underscores growing institutional willingness to diversify beyond Bitcoin and Ethereum.
At the same time, Canary Capital’s XRP ETF shattered first-day records for 2025, posting $59 million in trading volume and closing with $250 million in assets under management. Across all issuers, XRP spot ETFs have attracted more than $660 million in net inflows since mid-November. The next major milestone arrives with 21Shares’ TOXR ETF debuting on December 1, supported by a remarkable $666.6 million in pre-launch commitments. This product will hold physical XRP and track the CME CF XRP-USD Reference Rate, mirroring the architecture of leading Bitcoin and Ethereum ETFs.
A Constructive Outlook—With One Critical Barrier
Taken together, the improvement in market liquidity, the strength of long-term technical support, and the powerful surge in institutional adoption paint a constructive backdrop as XRP enters December. For now, maintaining a firm hold above the $2 region remains essential. Stability there suggests that the November decline could ultimately be seen as a corrective phase rather than the start of a deeper trend reversal.
But for the bullish narrative to fully materialize, buyers must eventually overcome the entrenched resistance overhead. Reclaiming $2.30 is the first step. Securing a breakout above $2.50 is the next. And ultimately, the decisive test lies at $3—the level that defines XRP’s long-term trajectory.
If that ceiling breaks, December may mark not just a recovery, but the beginning of an entirely new chapter for the asset.
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