XRP set to rally as investors gear up for CPI data release

Technologists, investors, and owners of XRP eagerly look forward to the Consumer Price Index (CPI) data release, as the announcement could cause a potential rally for the price of XRP 

CPI data publication day draws near 

According to Matthew Dixon, the CEO of Evai, a crypto rating platform, a scooping drop in CPI may be the push needed to facilitate a significant positive climb in the price of XRP. 

#XRP has been lagging lately but like many other tokens, weaker #CPI next week should awaken the sleeping giant and propel $XRP higher. pic.twitter.com/FEvUZiG7RM

— Matthew Dixon – CEO Evai (@mdtrade) May 10, 2024

Many market makers, participants, and even crypto sphere casual observers are waiting for the publication of the consumer price index (CPI) the data for which will be moved on May 17th.  Thus the economic indicator is a subject of speculation concerning its potential intrusion into different types of assets including cryptocurrencies. 

Among many analysts, including Dixon, the fact that a weak CPI number (latest CPI data) can potentially trigger an XRP price rally is a major factor that drives some market participants as well. 

Dixon’s bullish case for XRP is grounded on the unparalleled potential of digital assets, which present an innovative way to secure a decentralized financial system and support the accelerated development of smart contracts. 

He has mentioned that XRP is going to be a sleeping giant and soon it, is, going to, awaken. He said that if the surprising dip from CPI was less than expected, this could be the catalyst for XRP to reach new highs. The Federal Reserve is driven by this statement because the Fed takes a snapshot of the American inflation data.  If the data is then reflected to be rising, the Fed may think of a rate cut. 

Market trends and possible consequences

Dixon’s bullish case is founded on the inverted link between interest rates and asset prices, which exists between the traditional markets and the digital currencies as well. If the Fed’s monetary stance tends to support the low interest rates approach due to a loss in momentum of inflation, investors could invest in speculative investments such as cryptocurrencies since they offer higher returns than low-risk assets. Hence, XRP, being known for its potential to assist with international transfers, would likely have more people acquiring it and, in return, push its price upwards. 

 Despite Dixon’s prediction having drawn recognition from crypto community members, some industry veterans are skeptical and still treat the cryptocurrency market as a speculative trading instrument. Nonetheless, the idea of a ripe XRPdrop has interested enthusiasts in investors while they are watching for the total value of the Consumer Price Index Data Release to be made public.