NEW YORK, June 18, 2026, 08:47 EDT
- XRP traded around $1.17, down roughly 2.5% from its last close, moving between $1.16 and $1.22.
- The Federal Reserve kept its benchmark interest rate steady at 3.50%-3.75% but noted that inflation is still above its 2% target.
- Open XRP futures contracts hit 2.30 billion tokens, the largest since October, but other derivatives indicators stayed bearish.
XRP dropped below $1.20 on Thursday as investors reduced crypto holdings after the Federal Reserve indicated U.S. borrowing costs might increase later this year. The token traded around $1.17, down as much as 3.9% over the previous 24 hours earlier in the session.
The break is significant because $1.20 had held as support after XRP bounced from the $1.11-$1.15 zone last week. Intense selling pushed it below that level, though buyers managed to slow the drop around $1.1750. A move back above $1.20 could stabilize the market; if it falls below $1.1750 and stays there, $1.15 could come into play again.
The trigger came from Washington. Nine Fed officials expect at least one rate hike in 2026, and the central bank lifted its year-end inflation forecast to 3.6% from 2.7%. The dollar rose against major currencies. “This Fed decision was short, but not sweet,” said Karl Schamotta, chief market strategist at Corpay. Reuters
The outlook is uncertain. Michael Pearce, chief U.S. economist at Oxford Economics, said “roughly half the committee are now projecting a rate hike this year,” but his firm still expects the Fed’s next move will be a cut because its inflation forecasts are lower than the central bank’s. Reuters
XRP lagged behind the bigger cryptos. Bitcoin traded near $64,196, down about 1.1% from its last close. Ether fell around 0.3% to $1,747.86. The difference points to extra selling pressure on XRP after it failed to hold above $1.20 following the Fed shock.
Policy communication has become a new source of volatility. Fed Chair Kevin Warsh took away much of the guidance investors relied on to predict future moves. “He’s hot out of the gate, and he’s putting his thumbprint on everything Fed-related,” said Michael Reynolds, vice president of investment strategy at Glenmede. Reuters
There is still some support from regulated investment products. U.S. spot XRP ETFs — funds listed that let investors track the price without owning tokens — drew about $5.3 million on June 16, pushing total net inflows to about $1.44 billion. The latest drop shows these inflows might ease selling pressure but don’t protect XRP from a broad risk-off move.
The tape is clear: macro has control for now. The Dollar Index, which tracks the U.S. dollar against major currencies, pushed higher above 100.60 on Thursday. A rising dollar tends to put pressure on dollar-priced, non-yielding assets like major cryptocurrencies.
But the risks go both ways. Higher rate expectations might make interest-paying bonds more appealing and push XRP below $1.15, especially if leveraged traders have to close bullish bets. A weaker inflation number or a drop in the dollar could trigger short covering instead, but the Fed’s pulled back on guidance, leaving traders less sure about which way it will go.
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