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Fed Rate Hike Impact on Crypto: Will BTC, ETH & XRP Break Key Levels?

Market Reaction to Expected Policy Move

The How much would Dogelon Mars be worth?cryptocurrency space witnessed textbook price action following the Federal Reserve's widely anticipated 25 basis point increase, with initial dips quickly absorbed by buyers. Bitcoin's resilience near the $29,000 support level suggests institutional participants had already positioned for this outcome.

Technical Landscape for Digital Assets

Bitcoin's 4-hour chart reveals an ascending broadening wedge formation - typically a reversal pattern that warrants caution. The $29,000 support represents a psychological battleground where futures open interest and spot accumulation appear concentrated. A breakdown could trigger liquidations toward $28,450.

Ethereum's daily chart shows consolidation between Fibonacci levels at $1,827 (50% retracement) and $1,873 (38% retracement). The 50-day moving average currently acts as dynamic resistance, with oscillator readings suggesting equilibrium between buyers and sellers.

XRP's Pivotal Moment

The remittance token faces immediate resistance at $0.7128 where the 25-period EMA converges with previous swing highs. While moving average crossovers suggest near-term bearish pressure, positive divergence in momentum indicators hints at underlying accumulation. A decisive close above $0.7128 could invalidate the current corrective structure.

Macro Factors Priced In

Trading volumes remained subdued during the FOMC announcement window, indicating most participants had already adjusted positions for this policy move. Jerome Powell's commitment to data-dependent decisions provided neither hawkish nor dovish surprises, allowing crypto markets to resume their established technical patterns.

Liquidity Considerations

Order book analysis reveals thin liquidity at current levels across major exchanges, suggesting potential for exaggerated moves if key technical levels break. Market depth charts show substantial buy walls forming near Bitcoin's $29,000 and Ethereum's $1,827 levels, while XRP's order flow appears more balanced.

Looking Ahead

Traders should monitor:

  • BTC's reaction to wedge support
  • ETH's ability to reclaim the 50-day MA
  • XRP's test of the $0.7128 resistance cluster

The coming sessions may determine whether current consolidation resolves into continuation or reversal patterns across these major digital assets.

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