- XRP has gained over 383% in value since November becoming one of the top cryptocurrencies by market capitalization
- The FOMC meeting on December 17-18 will significantly impact the cryptocurrency market with expectations of another rate cut
- XRP and other cryptocurrencies could benefit if the anticipated rate cut materializes making this a crucial week for investors
Since November, Ripple Lab’s XRP has been performing as one of the fastest-growing cryptocurrencies in the market. In that timeframe, the currency managed to gain over 383% in value, causing it to quickly rise to the ranks of most valuable cryptocurrencies by market capitalization.
Initially, the asset gained traction following the victory of Donald Trump in this year’s U.S. Presidential election. Further down the line, XRP saw another boost in value after investors shared a positive view regarding the launch of Ripple Labs’ new Dollar-pegged stablecoin, $RLUSD.
At its highest point during the rally, XRP traded upwards of $2.70—effectively its second-highest price ever recorded, only behind 2018’s $3.11 mark. Since then, the currency has seen a price correction and currently sits at around $2.40 per coin.
Now as we head into the final moments of 2024—XRP sits at a crossroads as investors try to anticipate if the most popular token of the year’s last quarter will continue its bullish momentum in 2025.
What to Look Forward This Week For XRP
Undoubtedly the most important event for this week is the upcoming FOMC meeting on December 17-18. On the last day of the meeting, Federal Reserve Chair Jerome Powell will announce the new interest rate decision—which holds significant impact on the cryptocurrency market.
The recent past shows that XRP can be one of the most profitable currencies to hold during these types of events. For instance, last week’s CPI Data Report caused the asset to gain 21% in value following a modest inflation rate increase.
Still, on the “inflation” topic—the CPI’s 0.3% inflation increase shows that despite being on the rise—the United States economy is handling inflation well. This data will serve as a key indicator for the Fed regarding the new inflation rate decision.
In the last two meetings, Jerome Powell announced a rate cut, first a 0.50% slash, and then a 0.25% cut in November. With a favorable outlook on the state of the economy, expectations are that the Fed will announce yet another 0.25% cut—the first three consecutive slashes in over 5 years.
XRP and all the other cryptocurrencies stand to gain if that prediction materializes. As a result, this week is crucial for investors to keep a close eye on the developments.
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