XRP Today's News: Federal Reserve interest rate cut pushes price up to $2.1, ETF slowdown shows zero inflow for the first time

The Federal Reserve announces a 25 basis point rate cut to 3.50% to 3.75%, and XRP price temporarily surged to a high of $2.1097, but the dot plot shows only one rate cut in 2026, which is more hawkish than September’s forecast, leading XRP to give back its gains. On December 9, US XRP spot ETF net inflows plummeted to $8.73 million, with Franklin XRP ETF experiencing zero inflow for the first time.

Fed Rate Cut of 25 Basis Points but Dot Plot Damps Expectations

On December 10, the Fed lowered interest rates by 25 basis points to a target range of 3.50% to 3.75%, a decision widely expected by the market. Despite persistent high inflation and lacking the latest economic data, the Fed did not disappoint. Traders reacted positively to this rate cut, and the most notable moment in XRP news today occurred after the announcement, with XRP price soaring to a high of $2.1097, indicating market enthusiasm for accommodative monetary policy.

However, the good times did not last. The FOMC’s economic projections and dot plot indicated a pause in further easing of monetary policy, pressuring XRP and the broader crypto market. Committee members expect inflation to remain above the Fed’s 2% target until 2028. Based on this, the dot plot shows only one rate cut in 2026 and another in 2027, which is more hawkish than the September forecast of two cuts in 2026.

This hawkish shift caused XRP to dip to an intraday low of $2.0363 before stabilizing. Market interpretation of the Fed’s policy path is highly sensitive; the reduced number of rate cuts implied by the dot plot suggests liquidity conditions may not remain as loose as previously anticipated, creating pressure on the liquidity-dependent crypto markets. Despite the pullback on Wednesday, institutional demand remains robust, and legislative progress is favorable, supporting short- to medium-term bullish outlooks.

It is worth noting that the more hawkish rate path conceals the Fed’s resumption of quantitative easing (QE). The Fed will restart US Treasury purchases on Friday, December 12, after ending quantitative tightening (QT) on December 1. Typically, QE increases liquidity, boosting risk asset demand. This policy combination—slowing rate cuts while restarting asset purchases—creates a complex market environment, and traders should closely monitor this balance in XRP news today.

ETF Capital Flows Significantly Slow, Franklin Experiences Zero Inflows for the First Time

(Source: SoSoValue)

On December 9, US XRP spot ETF net inflows totaled $8.73 million, a sharp decline from $38.04 million the previous day, which is the most concerning data point in XRP news today. More notably, Franklin XRP ETF (XRPZ) recorded zero net inflow on December 9, marking the first time this major US asset manager experienced zero net inflow. In terms of assets under management, Franklin XRP ETF ranks 19th among ETF issuers.

The previous day, XRPZ had a net inflow of $31.7 million, indicating that institutional investors reduced their investments due to uncertainty about the Fed’s rate path after December. This volatile capital flow reflects institutional caution amid macroeconomic uncertainty. It is also noteworthy that on December 9, the US Bitcoin spot ETF market saw net inflows of $151.9 million, the second time in seven trading days that it outperformed the US XRP spot ETF market.

For comparison, US Bitcoin spot ETF inflows in December amounted to $3.8 million, far below the $277.5 million net inflow of US XRP spot ETF. Although Vanguard has allowed brokerage accounts to invest in crypto spot ETFs, the recent weekly inflows have not shown a significant increase in investor demand for cryptocurrencies. This slowdown could be a short-term wait-and-see attitude or a sign of institutional re-evaluation of XRP valuation.

Three Major Reasons for Slowing ETF Capital Flows

Uncertainty in Fed Policy: Investors adopt a wait-and-see approach ahead of FOMC meetings, awaiting clearer policy guidance

Technical Adjustment Needs: XRP has experienced a short-term rally, and institutions may temporarily reduce purchases waiting for better entry points

Year-End Portfolio Rebalancing: December is a period for institutional portfolio adjustments, limiting liquidity flows

Slow Progress on Market Structure Legislation Tests Bullish Outlook

The prospect of expanding the investor base is positive for XRP; however, demand may depend on progress in crypto-friendly legislation in the US. Eleanor Tretter, host and reporter of a US crypto show, shared updates from Capitol Hill: Democrats, during negotiations on the Market Structure Legislation, said they accepted “most of the content” in the Senate Banking Committee’s “Regulatory Freedom and Innovation Act” (RFIA) text, but the proposal from Republicans on December 4 still lacks the key principles Democrats seek.

In XRP news today, legislative progress remains a key variable affecting medium- to long-term outlooks. As background, XRP rose 14.69% on July 17 and soared to a historic high of $3.66 on July 18, reacting to the US House passing the Market Structure Legislation and sending it to the Senate. However, the token has tumbled 44% from its July high. Delays in the legislation’s implementation due to the US government shutdown have intensified this reversal, suggesting bipartisan support could trigger a breakout for XRP.

Democrats have sent a three-page counterproposal to Republicans, outlining demands on token classification, illegal finance, ethics, and restrictions on stablecoin yields under the Geniuses Act (GENIUS). This legislative tug-of-war indicates that the bill’s passage still requires time and is unlikely to be a short-term catalyst for XRP’s price. However, once bipartisan consensus is reached, it could open vast upside potential for XRP.

$2 Support Level Will Determine Short-Term Trend

(Source: Trading View)

On December 10, XRP declined 3.14%, erasing the previous day’s 1.64% gain, closing at $2.0412. The token underperformed the overall crypto market, which fell 0.74%. XRP ended a three-day rally and remains below the 50-day and 200-day exponential moving averages (EMAs). The EMAs show a bearish signal, but the fundamental outlook is reversing the technical trend, supporting a bullish view.

Key Technical Levels for XRP to Watch

Support Levels: $2.00, $1.9112, and $1.8239

50-Day Moving Average Resistance: $2.2508

200-Day Moving Average Resistance: $2.4660

Resistance Levels: $2.2, $2.35, $2.5, $2.62, $2.8, $3.0, and $3.66

If the price does not fall below the psychological support at $2.0, it is expected to test the 50-day moving average. A sustained break above the 50-day MA would focus attention on the $2.35 resistance. More importantly, a break above the 50-day MA could signal a short-term trend reversal to the upside. Such a reversal would support a mid-term (4-8 weeks) rally toward the 200-day MA and the $2.5 level.

Conversely, a decline below $1.8239 would invalidate the medium-term bullish structure. Avoiding the downtrend line and the $2.0 support could push bulls’ target prices higher to $2.2 and the upper trendline. If prices continue to break above the trendline, it could realize a medium-term (4-8 weeks) target of $2.5 and a long-term (8-12 weeks) target of $3.0.

Bullish Factors Support Medium-Term Upside Target

Despite short-term pressure, some bullish factors could change market expectations and support for XRP’s short- to medium-term price. As investor interest expands, strong inflows into XRP spot ETFs, bipartisan support for the Market Structure Legislation, and potential US OCC approval for Ripple to operate as a US-chartered bank could strongly boost prices in the next 1-4 weeks to $2.35, and in the 4-8 weeks to $2.5.

The strong inflows into XRP spot ETFs in December should not be overlooked. Although there was a slowdown on Tuesday, the total net inflow of $277.5 million in December far exceeds the $3.8 million in Bitcoin ETF inflows. This institutional demand provides a solid bottom support for XRP. If Ripple’s application for a US chartered bank license is approved, it would be a major breakthrough in XRP news today, marking Ripple’s transition from a blockchain company to a traditional financial institution, greatly enhancing its competitiveness in cross-border payments.

In summary, strong capital inflows into XRP spot ETFs and favorable legislative developments support a short-term rise to $2.35. The improvement in XRP’s utility and the passage of the Market Structure Legislation by the Senate will reinforce the medium-term (4-8 weeks) target of $2.5 and the long-term (8-12 weeks) target of $3.0.