Federal Reserve Chair Jerome Powell signaled on Tuesday that crypto banking regulations will be partially relaxed. He also made it seemingly clear that a near-term interest rate cut remains unlikely. 

Speaking at the Economic Club of Chicago, Powell addressed mounting uncertainty stemming from trade policy and reinforced the central bank’s cautious stance.

Fed’s Powell Maitains a Hawkish Outlook

Powell’s remarks come as market expectations for a May rate cut have collapsed, with CME FedWatch data pricing in just a 16% chance. US equities dipped modestly following the speech. The equity market currently reflects investor disappointment over the lack of dovish signals.

“We should not rush to lower interest rates,” Powell said. “We have every reason to wait for more clarity before considering any changes to Fed policy.”

The crypto market, however, remained relatively steady. Rate cut optimism had already been priced out after last week’s hawkish FOMC minutes and cooler-than-expected CPI print.

Powell also offered direct comments on digital assets.

“Cryptocurrency is becoming more popular. A legal framework for stablecoins is a good idea.”

He added that the Federal Reserve supports relaxing certain banking regulations on crypto. The Feds agree that the sector is maturing and requires more defined oversight rather than constraint.

The dual message—no imminent policy easing but a positive outlook for crypto regulation—was met with a muted response across digital asset markets. 

Bitcoin hovered near $84,500, showing resilience despite risk-off sentiment in equities. Powell acknowledged that economic growth had likely slowed at the start of 2025 and warned that Trump’s tariffs are a “key source of uncertainty.” 

He also noted the Fed is not close to ending quantitative tightening and may need to make difficult policy choices if inflation resurges.

While the Fed reaffirmed its readiness to provide dollar liquidity to global central banks if needed, Powell dismissed the idea of a Fed “put.” He said the central bank’s independence is “a matter of law.”

For crypto markets, the regulatory tone was a silver lining in an otherwise hawkish macro environment.

XRP gained only 2% in the past week, signaling weak momentum and fading interest from buyers in the short term.Technical indicators like the RSI, Ichimoku Cloud, and EMA lines are all starting to reflect increased bearish pressure. Here’s a breakdown of what the charts are saying and what could come next for XRP.

XRP RSI Shows Buyers Are Losing Control

XRP’s Relative Strength Index (RSI) has declined to 46.34, a noticeable drop from 57.30 just one day ago. This sharp move suggests a clear shift in momentum, with buying pressure cooling off significantly in the short term.

When the RSI drops this quickly, it can often indicate that traders are taking profits or beginning to rotate out of a position, especially after a period of modest gains.

While XRP hasn’t entered oversold territory yet, the drop below the 50 mark is typically viewed as a bearish signal, pointing to a potential shift in sentiment from bullish to neutral or bearish.

The RSI, or Relative Strength Index, is a widely used technical indicator that helps traders gauge the strength of a price trend. It ranges from 0 to 100, with readings above 70 considered overbought and readings below 30 considered oversold.

When the RSI is above 50, momentum is typically bullish, while levels below 50 reflect increasing bearishness. With XRP now sitting at 46.34, it suggests the asset is losing upward momentum and may be at risk of further downside unless buying interest returns soon.

If selling pressure continues and RSI trends lower, XRP could test key support levels in the near future.

XRP Ichimoku Cloud Shows Momentum Is Shifting

XRP’s Ichimoku Cloud chart currently shows a shift toward short-term bearish momentum.

The price has fallen below both the blue Tenkan-sen (conversion line) and the red Kijun-sen (baseline), which is typically viewed as a bearish signal.

When the price trades beneath these two lines, it often suggests weakening momentum and increasing downside risk unless a quick recovery follows.

Additionally, the price is now entering the green cloud (Kumo), which represents a zone of uncertainty or consolidation. The cloud ahead is relatively flat and wide, indicating potential support but also a lack of strong upward momentum.

The green Senkou Span A (leading span A) remains above the red Senkou Span B (leading span B), signaling that the broader trend is still slightly bullish—but if price action stays inside or breaks below the cloud, that trend may begin to reverse.

Overall, the Ichimoku setup points to caution for bulls unless XRP reclaims the Tenkan and Kijun lines convincingly.

EMA Lines Suggest XRP Could Fall Below $2

XRP’s EMA lines are showing signs of weakness, with XRP price repeatedly failing to break through the resistance near $2.17—even amid speculation about a potential partnership with Swift.

This repeated rejection at the same level indicates strong selling pressure. The EMAs suggest momentum is fading as the shorter-term average is beginning to bend downward.

A potential death cross, where the short-term EMA crosses below the long-term EMA, appears to be forming. If confirmed, it could signal a deeper correction ahead, with XRP possibly retesting support levels at $2.02 and $1.96.

A breakdown below these levels could lead to a drop toward $1.61. However, if bulls manage to reclaim $2.17, the next resistance at $2.24 becomes the key target.

A clean break above that could trigger a stronger rally, potentially pushing XRP to $2.35 or even $2.50 if momentum accelerates.