Why is XRP Down Today?

As a researcher who has closely followed the crypto market for several years now, I must admit that the current price drop of XRP is not entirely surprising, given the recent shifts in the broader financial markets. The Federal Reserve’s interest rate cut and Jerome Powell’s hint at a more hawkish stance have undoubtedly contributed to this downturn.

In the past 24 hours, the value of XRP’s native token has dropped by over 4.2%, now trading at approximately $2.174. Compared to its highest point this month, XRP has fallen more than 20%, from $2.85.

The cryptocurrency is nevertheless up more than 320% since Nov. 5, when Republican presidential candidate Donald Trump won the U.S. elections after campaigning on a pro-crypto stance.

The recent decrease in its price might be due to the continued crypto market downturn triggered by the Federal Reserve’s decision to lower interest rates by 0.25% and Chairman Jerome Powell indicating a more aggressive monetary policy, implying that fewer rate reductions could occur in the upcoming year.

Powell’s remarks cooled investor confidence and influenced various markets, causing a drop of over 3.5% in the S&P 500 initially, though it later regained some ground, still leaving it about 0.5% lower since the interest rate reduction.

An appreciating US dollar tends to put downward pressure on cryptocurrency values. This month, the U.S. Dollar Index, which compares the value of the US dollar against six significant fiat currencies like the euro, yen, and pound sterling, has risen by over 2%.

Despite a general positive market mood, XRP is seeing favorable effects. Notably, well-known crypto analyst Ali Martinez predicts that if XRP’s price manages to stay above $2.2, it could potentially push through the $2.7 resistance barrier.

According to recent reports, another well-known crypto expert has opined that XRP’s price graph presents the most optimistic outlook following a 20% dip in its value since the peak of $2.85 in early December.

The surge in value of XRP since November was fueled by several factors:

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2024-12-26 20:05