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XRP, the seventh largest cryptocurrency by market capitalization, has witnessed inflows as investor sentiment heats up amid growing speculation of an imminent rate cut by the U.S. Federal Reserve. Recent signals from the Federal Reserve indicate a possible shift in monetary policy, deemed favorable for cryptocurrencies.
After the market received news of potential monetary easing, cryptocurrencies saw a bullish wave, from which XRP benefitted.
According to the most recent CoinShares report, XRP investment products received inflows of $0.3 million in the past week, coinciding with a broader bullish trend on the cryptocurrency market.
In the past week, according to a CoinShares report released Monday, digital asset investment products saw inflows totaling $533 million, marking the largest inflows in five weeks. This surge followed remarks by Fed Chair Jerome Powell at the Jackson Hole Symposium, where he suggested that the first interest rate cut could occur in September.
Tomiwabold OlajideBitcoin was the primary focus, seeing $543 million of inflows, indicating its sensitivity to interest rate expectations. Altcoins, including XRP, accounted for the rest of the inflows; Ethereum, on the other hand, saw outflows totaling $36 million.
XRP price action
At the time of writing, XRP was down 2.36% in the last 24 hours to $0.59, reflecting profit-taking across the crypto market.
XRP had risen to highs of $0.631 in Saturday's trading session, where bulls had encountered resistance. XRP saw profit-taking in Sunday's trading session, which continued into Monday, with XRP falling to intraday lows of $0.586.
If the declines continue, bears may target the 50-day SMA support at 0.567. If they do this, it could mean that XRP would remain stuck in the $0.41 to $0.64 range for some time. If the recovery continues and buyers push past $0.63, XRP might hit $0.64, which might pose a substantial challenge.
Mushumir Butt
Yuri Molchan