Amid expectations of a rate cut by the U.S. Federal Reserve, XRP, the seventh largest cryptocurrency by market capitalization, is witnessing increased investor interest.
Impact of the U.S. Federal Reserve
Recent signals from the U.S. Federal Reserve indicate a possible shift in monetary policy, which is considered favorable for cryptocurrencies. This has led to a bullish trend in the crypto market, from which XRP has benefitted.
Recent Investment Flows
According to the latest CoinShares report, XRP investment products received inflows of $0.3 million in the past week, aligning with a broader bullish trend in the cryptocurrency market. Overall, digital asset investment products saw inflows totaling $533 million last week, marking the largest inflows in five weeks.
XRP Price Dynamics
At the time of writing, XRP was down 2.36% in the last 24 hours, to $0.59. XRP had risen to highs of $0.631 in Saturday's trading session, where bulls encountered resistance, leading to profit-taking that continued into Monday. If the declines continue, bears may target the 50-day SMA support at $0.567. If the recovery continues and buyers push past $0.63, XRP might hit $0.64, which could pose a significant challenge.
The statements from the U.S. Federal Reserve and subsequent changes in the cryptocurrency market emphasize the importance of monetary policy expectations for cryptocurrency price movements, including XRP.
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