Ripple’s XRP traded above $1.38 on Monday after rebounding from support near $1.33, moving with the broader crypto market as traders watched for resistance around $1.40. Volatility is expected to remain elevated this week with the US Senate scheduled to vote on the CLARITY Act on Tuesday, followed by the Federal Reserve’s policy decision on Wednesday.
FedWatch data showed markets pricing an 88% probability of a rate move to 3.75%–4.00%. That follows US CPI holding at 3.4% in August, matching expectations, according to the BLS, and remaining above the Fed’s 2% target. In technical terms, XRP is trading above the 50-day, 100-day and 200-day EMAs, while RSI sits around 56; MACD remains slightly below zero. Nearby demand is cited above $1.38, with further support near the 200-day EMA at $1.36, then the 50-day EMA at $1.28 and the 100-day EMA at $1.25.
Anticipating Market Volatility Amid Senate and Fed Decisions
As we navigate this pivotal week starting September 14, 2026, derivative traders should brace for intense market swings. With the Senate voting on the CLARITY Act tomorrow and the Fed announcing its rate decision on Wednesday, we expect a massive spike in implied volatility. Historically, major regulatory events and central bank policy shifts of this scale have caused liquidations in crypto futures to surge by over 150% in a single day.
Impact Of Fed Policy And Strategic Trading Recommendations
Market sentiment is heavily impacted by the 88% probability of a Fed rate hike to 3.75%-4.00% following steady 3.4% inflation. During similar high-interest-rate environments in late 2022, rising treasury yields forced a 60% drop in overall crypto market capitalization as capital rotated to safer assets. To survive this tightening liquidity, we advise futures traders to immediately lower their leverage and tighten their stop-loss orders.
Technically, while XRP remains constructive above its 50-day EMA of $1.28, the cooling RSI points to a period of consolidation rather than a rapid breakout above $1.40. We suggest that options traders utilize delta-neutral strategies, such as iron condors, to capture high premiums before the volatility subsides. Selling out-of-the-money puts near $1.25 and buying protective calls above $1.40 will help us manage risk during these turbulent macro events.
