Introduction BitMorpho Daily News & Fundamentals: XRP Date: Thursday, December 11, 2025 Good morning, crypto faithful. Today, the focus for XRP is firmly locked onto the fallout from yesterday’s highly anticipated Federal Reserve decision, which has sent immediate shockwaves across the broader digital asset space. While Ripple’s utility metrics remain fundamentally strong with the XRP Ledger continuing to process payment volumes well above the $1 billion-per-day threshold the prevailing macro sentiment has exerted significant short-term bearish pressure. The Fed delivered the widely expected 25 basis point cut, but the subsequent “hawkish pause” signal from Chair Jerome Powell and the dot plot projections suggesting only one rate cut in 2026 dampened initial risk-on exuberance. This policy pivot has triggered a widespread risk-off environment in the market, causing XRP to shed recent gains and test the crucial 2.00 psychological and technical support level early Thursday morning. XRP was trading near 1.99, reflecting a decline of over 4% in the last 24 hours as the market digests the less dovish path forward. For XRP holders, this moment is critical: the token’s ability to defend the 2.00 floor a significant historical area of accumulation will determine whether the current downtrend continues toward 1.85 or if institutional demand, bolstered by ETF inflows, can stage a defense. Furthermore, underlying political tensions continue as President Trump prepares his nomination for the next Fed Chair, casting a long shadow over the central bank’s future impartiality. Keep a close watch on on-chain dynamics as they collide with these potent macro headwinds today. News Analysis XRP Price Under Macro Pressure, Institutional Momentum Remains Intact The digital asset market is navigating a significant period of consolidation following yesterday’s highly anticipated Federal Reserve meeting. While the Fed delivered the expected 25 basis point cut, the subsequent signaling of a less aggressive easing path for 2026 prompted a widespread risk-off sentiment that has immediately impacted XRP. This macro headwind has driven the token down to test the critical $2.00 support level in early Thursday trading, reflecting a daily decline of over 4% as the market digests the move away from peak dovish expectations. Macro Collision: The Fed’s Hawkish Pause The primary driver for the market’s current bearish lean is the Federal Reserve’s policy statement and the updated dot plot projections, which signaled a more restrained approach to future interest rate cuts. This shift dampens the liquidity-fueled exuberance that had propelled risk assets, including XRP, in previous weeks. Historically, XRP’s price has shown sensitivity to shifts in dollar liquidity and Treasury yields, making it vulnerable to tighter financial conditions implied by a “hawkish pause.” Traders are now laser-focused on whether XRP can maintain the 2.00 floor, a level seen as crucial for preventing a deeper correction toward the 1.85 zone. The market’s reaction to this macro surprise is currently overriding otherwise positive fundamental developments. Institutional Strength: ETFs and Funding Underpin Demand Despite the broader market pullback, the institutional narrative surrounding XRP remains robust, offering a layer of defense against sustained downside. Spot XRP Exchange-Traded Funds (ETFs) have continued to attract capital, with cumulative net flows approaching the 950 million mark following their approvals. This sustained, rule-based institutional demand suggests investors are treating XRP as an infrastructure-grade asset rather than mere speculation. Furthermore, Ripple recently secured a landmark 500 million funding round, a significant institutional milestone that bolsters the company’s focus on building out its payment infrastructure. This funding underscores deep-pocketed confidence in Ripple's long-term trajectory, regardless of short-term macro swings. Regulatory Clarity Fuels Infrastructure Adoption A key long-term catalyst for XRP has been the ongoing regulatory clarity in the U.S. The recent guidance from the Office of the Comptroller of the Currency (OCC) permitting banks to act as "riskless principals" in crypto transactions is seen as a major on-ramp for traditional finance adoption of assets like XRP. This, combined with the operational progress of Ripple’s RLUSD stablecoin which recently gained recognition from the Abu Dhabi FSRA continues to legitimize Ripple’s model for compliant cross-border settlement. Analysts suggest this regulatory scaffolding could transform XRP into a globally trusted "bridge asset" once full U.S. national bank charter approval which Ripple has applied for is secured. On-Chain Dynamics: Mixed Signals from Large Holders On-chain data paints a contrasting picture compared to the institutional inflows. While some earlier reports indicated that XRP whales were accumulating between 1.90 and 2.20, absorbing retail sell-off pressure, more recent flow analysis suggests a strategic pivot toward distribution. Large wallets, specifically those holding over 10 million XRP, have shown an increased movement of tokens toward exchanges like Binance, suggesting an intent to sell or rebalance rather than secure long-term custody. This shift in whale behavior, coinciding with the macro downturn, is adding to the immediate selling pressure. However, the XRP Ledger (XRPL) itself is showing high engagement, having recently set a new record for network velocity, indicating that the asset is actively circulating for utility purposes despite the price consolidation. Community and Technical Outlook The community sentiment is naturally fragile following the drop below 2.00, as the asset has shown sensitivity to broader market risk-off environments. Technically, the defense of the 2.00 psychological level is paramount. If this support holds, the institutional buying pressure supported by ETF inflows could stage a defense and push XRP back toward the 2.20 resistance zone. Failure to hold 2.00, however, would likely validate the current bearish momentum, potentially leading to a retest of lower support levels as traders digest the Fed’s less dovish outlook heading into 2026. The collision between strong underlying utility/institutional interest and potent macro headwinds defines the current trading day for XRP. Outlook Conclusion: Navigating Macro Crosscurrents The immediate outlook for XRP is decidedly mixed, caught in a tug-of-war between immediate macro headwinds and underlying institutional conviction. The Federal Reserve’s decision to signal a less aggressive rate-cutting trajectory for 2026 has injected a wave of risk-off sentiment, pulling XRP down to challenge the critical $2.00 support level. This short-term selling pressure, driven by tightening liquidity expectations, is currently dominating price action and must be addressed before any sustained upward momentum can resume. However, the narrative of sustained institutional demand, evidenced by robust inflows into XRP ETFs approaching the $950 million milestone, provides a crucial floor. This suggests that long-term, infrastructure-focused capital remains committed to the asset regardless of temporary Fed-induced volatility. For the next 24-48 hours, investors must closely monitor whether XRP can decisively defend the 2.00 support. A clear rebound from this level would signal that institutional buying is absorbing the macro-driven liquidation. Conversely, a breakdown below 2.00 could invite a deeper retracement toward the $1.85 zone. Traders are advised to watch for stabilization as the market digests the Fed’s implications against the backdrop of persistent ETF accumulation. *** *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*