Recently, XRP, the Ripple-linked coin, has seen significant price fluctuations, influenced by multiple factors, including the US Federal Reserve’s interest rate decisions.
The impact of the Federal Reserve’s decisions on XRP:
On December 17, 2024, the Federal Reserve announced a 25 basis point interest rate cut, which led to a general decline in the cryptocurrency market, including XRP. This cut, although expected, raised concerns about continued inflation, prompting investors to reduce their exposure to digital assets.
Launch of the stablecoin RLUSD:
In the same vein, Ripple launched its stablecoin RLUSD on December 17, 2024. This launch sent the price of XRP to $2.73, its highest level in several weeks. However, this rally did not last long, as the price fell by more than 18% within 24 hours, affected by the broader market decline.
Future expectations:
With XRP price holding steady around $2.41, investors are looking for a breakout of the $2.50 resistance level. It is believed that any further rate cuts by the Federal Reserve could support XRP price to rise to new highs, possibly reaching $3 in the coming weeks.
Tips for investors:
Given the ongoing volatility in the cryptocurrency market and the potential impact of Federal Reserve decisions, investors are advised to closely monitor economic developments and make informed investment decisions.
Note: It is always advisable to check reliable sources before making any investment decisions, due to the constant market volatility.
