XRP is stabilizing around $3, but dark clouds are looming over the cryptocurrency market in general. Bitcoin has dropped below $109,000, and economist Peter Schiff warns that a further decline to $75,000 could be the next step.

With political volatility in the United States shaking confidence in the Federal Reserve and investors closely monitoring interest rate decisions in September, the short-term outlook for XRP is tightly linked to Bitcoin's fate. If BTC continues to weaken, XRP could quickly lose its current support area.

XRP Price Forecast: Schiff's Warning and Spillover Effects

Peter Schiff, one of Bitcoin's most steadfast critics, has once again warned that BTC may be on the brink of a deeper correction. In a recent statement, Schiff indicated that Bitcoin could drop to a low of $75,000 after falling below $109,000 this week, down 13% from a recent peak.

His argument is simple: with institutional investors heavily invested, such sudden declines ring alarm bells about the overall stability of the market. If Bitcoin follows that path, XRP and other cryptocurrencies are almost certain to face pressure.

Overall Context: Political instability and Market confidence

Moreover, the political situation in the United States is also heating up. President Trump's firing of Reserve Bank Governor Lisa Cook has raised questions about the independence of the central bank, just as the FED is preparing for the possibility of interest rate cuts in September.

While the stock market has shrugged off unexpected events, with the Dow Jones, S&P 500, and Nasdaq all recording slight increases, the cryptocurrency market is much more sensitive to the reliability of the FED and expectations about interest rates. A sudden policy change could sharply increase or decrease the dollar, and both scenarios would affect XRP's price volatility.

XRP Price Forecast: Narrow range but vulnerable

Looking at the daily chart of XRP, the price is hovering around $3.00, stabilizing after the price surge in July. Bollinger Bands are contracting, indicating reduced volatility, while the middle band at 3.08 is acting as a short-term support level. Recent attempts to rally have failed near $3.33, an important barrier that coincides with the Fibonacci R1 level.

If Bitcoin continues to slide, the price of XRP could break through the support area of $2.80–3.00, opening the door for a deeper correction around the $2.50 level. On the positive side, bulls need to break above $3.35 to reconsider the $3.80 area, with $4.00 being the next psychological milestone.

Short-Term Outlook: Bitcoin Determines Trend

The fact is, XRP's short-term direction depends on Bitcoin's movements. If BTC finds support above $100,000 and stabilizes, XRP may hold the $3.00 level and gradually recover. But if Schiff's $75,000 target becomes a reality, XRP is likely to fall below $3.00 and struggle to regain momentum.

The current overall situation, both fundamentally and technically, supports caution. While equities are rising, the cryptocurrency market remains weak under the shadow of FED policy and Schiff's negative warnings about Bitcoin. For XRP investors, the $3.00 support level is a fragile boundary. A confirmed recovery of BTC could drive further gains, but another significant decline in Bitcoin will almost certainly drag XRP down with it.

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