- Ripple price eyes recovery alongside Bitcoin and altcoins as the Federal Reserve keeps interest rates unchanged.
- In the SEC v. Ripple lawsuit, a ruling is expected in 2024, the window for an appeal extends into 2025.
- XRP price eyes rally to $0.7430, a level previously hit in mid-November 2023.
The US Federal Reserve left interest rates unchanged in the December 13 Federal Open Market Committee (FOMC) policy meeting. With further interest rate hikes off the table, crypto market participants have reason to expect a rally in Bitcoin and altcoins.
In the past 24 hours, prices of Bitcoin and altcoins, including XRP, have observed gains. XRP price climbed to $0.6237 on Thursday.
Also read: XRP price drop to $0.55 likely amidst Senator Elizabeth Warren’s final push in US crypto legislation
Daily Digest Market Movers: FOMC policy meeting conclusion likely catalyst for gains in XRP
- The FOMC meeting on Wednesday concluded with policymakers keeping interest rates unchanged. The target rate for the federal funds rate is 5.25% to 5.50%.
- With further interest rate hikes off the table, crypto market participants are bullish on Bitcoin, altcoin price recoveries.
- Bitcoin price made a comeback above $42,700 in response to the FOMC meeting and XRP price rallied to $0.6332, on Wednesday.
- The SEC v. Ripple lawsuit is likely to culminate in a settlement in 2024. If there is no settlement, an outcome is expected next year with the appeals window open for the regulator until 2025.
- Judge Analisa Torres’ July 13 ruling proved to be a partial victory for the cross-border payment remittance firm.
- XRP holders expect a favorable outcome in the SEC v. Ripple lawsuit next year.
- Lgal expert and attorney, John Deaton, believes a settlement of nearly $20 million is likely.
- XRP holders have a bullish outcome on the lawsuit ruling since the regulator chose to drop its case against Ripple’s executives Brad Garlinghouse and Christian Larsen.
Technical Analysis: XRP price eyes comeback to $0.74
XRP price recovered from its recent pullback alongside other altcoins in response to the FOMC meeting. XRP price is currently in an uptrend that started in mid-October 2023. The altcoin is likely to continue rallying towards its $0.7430 target, 61.8% Fib level of the decline from its July 13 top of $0.9403 to August 17 bottom of $0.4237.
XRP/USDT 1-day chart
A daily candlestick close below the 50-day Exponential Moving Average (EMA) at $0.6129 could invalidate the bullish thesis. In the event of a decline in XRP price, the downside target is the 200-day EMA at $0.5602.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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