Fed's Shift to a Softer Stance Triggers XRP Rally as Investors Turn to Riskier Assets

The U.S. Federal Reserve’s 25-basis-point interest rate cut in September 2025 has fueled a stronger bullish trend in the crypto sector, with Ripple’s

gaining attention as a top choice for speculative traders. On September 18, XRP reached $3.05, rising 2.1% over the past day based on Kraken’s figures. Experts link this rally to the Fed’s dovish shift, which has softened the U.S. dollar and pushed investors toward riskier assets. The introduction of the REX-Osprey XRP ETF, anticipated this week, is expected to further drive institutional interest. CoinCodex projects prices could climb to $3.31 by October and $3.51 by the end of 2025 Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ].

Technical analysis supports the current optimism. XRP has surpassed short-term resistance at $3.05, while open interest in derivatives has reached a record $220 billion, heightening the risk of volatility Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ]. On-chain data reveals a 62.8% jump in 24-hour trading volumes to $7.39 billion, signaling robust short-term momentum Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ]. Analyst Justin Wu noted that XRP tends to benefit from Fed policy easing, suggesting the coin might “rebound to $3.25, $3.50, or even set a new all-time high” if the central bank cuts rates by 50 basis points XRP Price Prediction for Sept 17: Here Is Why Fed Cuts Could … [ 2 ].

Growing institutional involvement further strengthens the bullish outlook. In the third quarter, publicly traded firms have increased their crypto holdings by $25 billion, with a notable share invested in XRP Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ]. XRP’s market capitalization, now ranking third, has expanded over 415% year-over-year. However, the high level of derivatives trading introduces risk, as sudden spikes in funding rates could lead to swift price reversals Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ].

Long-range forecasts are even more positive. Austin

, a cryptocurrency analyst, foresees XRP potentially reaching “at least $10 by the close of Q4 2025,” provided it follows Bitcoin’s possible rise to $150,000–$200,000. This outcome depends on the Fed’s upcoming meetings in October and December, where more rate cuts could maintain capital inflows. “A significant bull run is expected in October, November, and December,” Hilton predicted, calling the final quarter the “core of the cycle”.

Nevertheless, traders are approaching the market with caution. The Fear & Greed Index sits at 57 (Greed) and the crypto RSI measures 56.22, pointing toward potentially overbought levels Bitcoin, Ethereum, XRP Price Prediction After Fed Rate … [ 1 ]. Should the Fed opt for a 50-point rate decrease, the dollar could weaken rapidly, enhancing XRP’s attractiveness but also increasing market swings. According to Polymarket, traders assign a 91% chance to a 25-point cut and a 7% probability for a 50-point adjustment.

The wider economic backdrop adds further complexity. The Fed’s latest rate reduction follows signs of a cooling job market, with unemployment climbing to 4.3% in August and slower job creation. These conditions have led to increased investments in

and ETFs—totaling $642 million in the past week—though the altcoin rally remains fragile. Whether XRP can preserve its momentum will depend on regulatory developments, ETF performance, and the Fed’s future policy guidance.