XRP eyes $3.2 as Fed cuts interest rate; Check forecast
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The total cryptocurrency market cap has reclaimed the $4 trillion mark once again after Bitcoin and other major coins rallied in the last 24 hours. Bitcoin hit the $117k mark once again, while Ether is trading above $4,600.
Ripple’s XRP has topped the $3.0 resistance and is now heading towards the $3.18 TLQ level. With XRP adoption growing, the coin could rally to a new all-time high soon.
Fed cuts interest rate, first U.S. XRP ETF to launch today
XRP is up by 2% in the last 24 hours and is now trading above $3 per coin. The positive performance comes after the United States Federal Reserve announced on Wednesday that it had lowered its benchmark rate range by 25 basis points to 4%-4.25%.
According to the Fed, the rate cut comes as the economic growth in the first half of the year had moderated, while the job market had also slowed.
Fed Chair Jerome Powell stated that there was no basis for a larger cut as he defended the Fed’s decision to wait till now to lower interest rates.
Another factor behind XRP’s ongoing positive performance is the launch of the first U.S.-listed spot ETFs for XRP and DOGE later today, under the tickers XRPR and DOJE.
Bloomberg Intelligence analyst James Seyffart pointed out that the ETFs aren’t pure spot products.
Rather, the funds are designed to hold XRP and DOGE directly, while also investing in other spot ETFs from outside the US to achieve exposure.
This isn’t “pure” spot. But it will hold spot directly and other spot XRP ETFs from around the world to get its exposure. The fund documents also have language that would allow derivatives usage for exposure if needed but that definitely isn’t the primary exposure method
CME has also revealed plans to boost its crypto derivatives lineup by listing options on XRP and Solana futures, from October 13th, pending regulatory review.
According to the exchange, its decision to list the XRP and SOL futures is prompted by strong growth in its newer altcoin futures.
XRP eyes $3.2 as bullish momentum gathers
The XRP/USD 4-hour chart is bearish and efficient despite Ether topping the $3 mark a few hours ago.
However, the momentum indicators are switching bullish, suggesting that buyers are regaining control of the market.
The RSI of 55 shows that it is no longer in the bearish zone, with further upward movement to take it into the overbought region in the near term.
The MACD lines have also crossed over into the positive territory, suggesting a growing bullish momentum.
At press time, XRP is trading at $3.0711. If the bullish trend continues, XRP could rally past the first major resistance level and the TLQ at $3.20.
An extended bullish run would allow XRP to hit the $3.40 mark for the first time since July.
However, if the market undergoes a correction following its recent rally, XRP could retest its recent support level at $2.95.
The support level will likely hold, as failure to do so could see XRP drop to the $2.70 region.
The post XRP eyes $3.2 as Fed cuts interest rate; Check forecast appeared first on Invezz
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