XRP price rally to $0.74 likely as crypto market recovers post FOMC meeting
- 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.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
