XRP saw a notable shift in trader sentiment recently, as top Binance futures traders pulled back on their long positions in anticipation of a crucial speech by Federal Reserve Chair Jerome Powell. This adjustment reflects growing caution among crypto investors ahead of potential signals about interest rates and economic policy.

Top Binance Traders Show Caution Ahead of Fed Update

According to data from Binance’s leaderboard of elite traders, there’s been a significant decline in the number of XRP long positions. In just the last 24 hours, the top futures accounts halved their exposure to XRP longs—from over 50% down to roughly 27%. This trimming comes as market participants await insights from Powell’s upcoming speech that could shape short-term risk appetite.

Jerome Powell is slated to address the market amid speculation over possible changes to monetary policy. Traders are particularly sensitive to hints of tighter financial conditions, which could reduce investor enthusiasm for risk assets like cryptocurrencies, including XRP.

Short-Term Volatility Expected for XRP Holders

This sudden pullback underscores anxieties about growing macroeconomic uncertainty. XRP, often known for relatively stable price movements compared to other altcoins, may be entering a phase of increased volatility. The shift in derivatives sentiment could foreshadow erratic behavior in the spot market.

While XRP’s technicals haven’t yet signaled a dramatic breakdown, the decreasing number of bullish bets may pressure the token in the near term. Both institutional and retail investors tend to react swiftly to U.S. monetary guidance, and XRP’s price may not be immune to those dynamics—even without direct regulatory action being discussed.

Broader Crypto Market Remains on the Edge

The XRP shift is part of a broader market movement seen across several major cryptocurrencies in recent days. Bitcoin, Ethereum, and other altcoins have also witnessed a lowering of bullish sentiment ahead of macroeconomic announcements. Traders are playing defense, reducing risk as central bank updates come into view.

Though XRP has often decoupled from broader market trends during moments of ecosystem-specific news—like developments around [Ripple’s legal case](https://u.today/ripple-v-sec-case-may-not-end-in-settlement-lawyer-explains-why)—this latest move suggests a market-wide sensitivity to central bank signals.

Outlook for XRP Hinges on Market Signals

If Powell’s comments suggest a more hawkish Fed, it could lead to a flight from high-risk assets, exerting additional pressure on cryptocurrencies. However, if monetary tightening slows or pauses, XRP and peers might regain upward momentum. For now, experienced traders are erring on the side of caution.

This recalibration by some of Binance’s most-followed traders is a compelling indicator for others to watch. Market watchers will be observing not just Powell’s words but also how XRP’s futures funding rates and open interest evolve following the speech. Small shifts in trader bias can often cascade into broader market reactions.

Related: XRP Price: $12M Max Pain for Bears

Ahead of a key Fed speech, top XRP traders reduce exposure, signaling caution across the crypto market.