XRP Price Prediction: Goldman Sachs’ Fed Warning & $3.84 XRP Price Forecast Collide

XRP finds itself at a critical juncture once again, with price swings keeping investors on edge. As the cryptocurrency struggles to hold key support levels, speculation is heating up.

Wall Street giant Goldman Sachs has sounded the alarm on the Federal Reserve’s upcoming rate cuts, while top analysts foresee a potential breakout, eyeing a surge to $3.84 in the coming months.

Will macroeconomic headwinds stall XRP’s momentum, or is a major rally on the horizon? Here’s what experts are saying about Ripple’s next move.

Goldman Sachs’ Inflation Forecast and Its Impact on Crypto

A fresh projection by Goldman Sachs may herald a dramatic change in the financial picture and for risk assets such as cryptocurrencies. The banking behemoth now believes core inflation to increase to 3.5% this year, from its previous 3.0% estimate.

Goldman sees core PCE at 3.5%, expecting three Fed rate cuts—potentially stirring XRP volatility. Source: Wu Blockchain via X

To offset rising inflation and its impact on employment, Goldman Sachs is predicting the Federal Reserve to implement three interest rate cuts over the second half of 2025. It is a stronger prediction than the Fed’s formal projections, which predict more modest declines.

Earlier, low interest rates incentivized investments in risk assets, including cryptocurrencies. If the Fed goes through with the cuts, the resulting surge in liquidity will assist in driving gains in XRP and other virtual currencies. Traders now wait for future economic indicators and a speech by Fed Chair Jerome Powell to receive more guidance from the markets.

XRP Price Prediction: A Path to $3.84?

Market analyst EGRAG Crypto has reaffirmed his bullish stance on XRP, forecasting a potential rally past its all-time high of $3.84 by mid-2025. His analysis is based on historical patterns that indicate XRP often experiences two major price peaks during bull markets.

XRP’s inverse head-and-shoulders pattern signals a potential breakout to $3.7–$3.9. Source: EGRAG CRYPTO via X

Looking back at past cycles, XRP first peaked in June 2017 at $0.3988, followed by a correction before it surged to $3.84 in January 2018. A similar pattern unfolded in 2021 when XRP hit $0.79 before the Ripple vs. SEC lawsuit temporarily stalled momentum. Despite regulatory setbacks, XRP later rebounded to $1.97 in April 2021.

EGRAG Crypto’s latest analysis points to a comparable trajectory in 2025. After XRP’s $3.40 peak in January, the Relative Strength Index (RSI) has cooled off, mimicking past cycles. If history repeats, XRP could see another major breakout by May or June.

XRP’s Short-Term Outlook: Can It Maintain Momentum?

Over the past 24 hours, XRP has seen increased volatility. The cryptocurrency initially traded around $2.14 before dropping due to a bearish ‘death cross’ signal. However, it later rebounded, reaching $2.18 amid strong buying pressure. Analysts warn that while current consolidation around $2.18 appears stable, XRP remains at risk of short-term corrections.

Ripple (XRP) was trading at around $2.12, down 2.68% in the last 24 hours. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Technical indicators present a mixed picture. While the RSI suggests overbought conditions, the Moving Average Convergence Divergence (MACD) recently formed a ‘golden cross,’ a signal that often precedes upward momentum. For XRP to sustain its gains, it must maintain support above $2.12 and attract fresh buying interest.

Ripple’s RLUSD Gains Traction Among Stablecoins

Ripple’s stablecoin, RLUSD, continues to gain momentum in the crypto market, outperforming major competitors in a key efficiency metric. According to CoinMarketCap data, RLUSD currently boasts the highest volume-to-total-value-locked (TVL) ratio at 39.49%. This puts it ahead of Tether (36.45%), USDC (15.02%), and PayPalUSD (6.76%).

RLUSD’s $10M Q1 volume proves its real-world adoption, fueled by XRPL’s speed and low fees. Source: The Rippler Effect via X

Since launching in December 2024, RLUSD has surged to a market capitalization of $243.77 million, exceeding Ripple’s internal expectations. Ripple CEO Brad Garlinghouse previously projected that RLUSD would rank among the top five stablecoins by year-end, and current trends suggest this goal is within reach.

The Bigger Picture: XRP’s Long-Term Potential

Despite recent price fluctuations, the long-term fundamentals of XRP are strong. Ripple’s ongoing partnerships with banks, including Bank of America, remain a foundation for XRP’s application in cross-border payments. In addition, the growing adoption of the Ripple Ledger for Central Bank Digital Currencies (CBDCs) could be a significant boost to the value of the asset.

XRP’s current setup mirrors the 2016/2017 bull run, signaling a potential explosive rally. Source: Reeza87 on TradingView

A few analysts think XRP may one day break through $100, fueled by growing institutional adoption and restricted retail availability. Alpha Lions Academy founder Edoardo Farina has contended that as inflation grows and daily costs rise, fewer retail investors will be able to afford XRP, which will result in more accumulation by financial giants.

While the market faces economic uncertainty, XRP finds itself at a critical juncture. Whether it follows a bullish trend to $3.84 or faces further corrections will largely depend on macroeconomic trends, regulatory news, and investor sentiment.