Ripple’s XRP token started the year with a bang. The asset breached the $3 mark for the first time in seven years in January and went on to hit a new all-time high of $3.65 in July. However, XRP has faced quite a struggle over the last few weeks. According to CoinGecko data, XRP’s price has fallen 3.6% in the last 24 hours, 14.9% in the last week, 18.7% in the 14-day charts, and 19.8% over the last month. Despite the steep price correction, XRP is still up by 344.5% since October 2024.
Will An Interest Rate Cut Rescue XRP’s Falling Price?
XRP’s lackluster performance over the last few years was due to the ongoing lawsuit between the SEC and Ripple. With the lawsuit out of the way, XRP began to surge to price levels not seen in years. While 2025 has been quite a bullish year for XRP, the general market slump over the last few weeks has led to substantial outflows.
The crypto market faced its most significant one-day liquidation earlier this month. The dip was likely due to the trade spat between the US and China. The market recovered slightly after both sides sat down to negotiate. However, the market is still quite fragile. XRP and other assets have not fully regained their momentum.
The Federal Reserve rolled out its first round of interest rate cuts in September. The crypto market picked up steam after the Fed announced a 25 basis point rate cut. There is a very high chance that the Federal Reserve will introduce another 25 basis point cut in October. Another rate cut could trigger a market-wide rally. XRP could reclaim the $3 mark once again if interest rates go further down.
Also Read: Ripple’s XRP Price Will Fall to $1?
However, given that trade wars and macroeconomic conditions are still not ripe, XRP could face further hurdles along the way.
Credit: Source link