The crypto market continues to experience volatility this week, but XRP surprises with a 5% daily rally. Hopes for another rate cut from the Fed are driving optimism.
The cryptocurrency market is going through one of its most turbulent phases of the year. After a week marked by the largest liquidation event in months and rising geopolitical tensions, volatility has become the norm. Major assets such as Bitcoin and Ethereum reflect this uncertainty with red numbers. However, amid this complex landscape, several cryptoassets continue to show unexpected signs of strength.
XRP, despite having lost ground in the overall rankings, is leading a surprising recovery over the past 24 hours. This move not only captures investors' attention but also coincides with a new ray of hope on the macroeconomic horizon: the possibility that the US Federal Reserve will announce a new rate cut on October 25.
XRP rises more than 5% in the last few hours
The latest data from cryptocurrency price tracking platform CoinMarketCap paints a mixed picture that highlights XRP's current outlook.
As the broader market struggles to find a bottom, with Bitcoin (BTC) trading around $110.400, racking up a slight 2,44% recovery in 24 hours, and Ethereum (ETH) following a similar trend with a 1,47% climb to $3.980, XRP has decided to take a different path.
Ripple's cryptocurrency has seen an impressive 5,12% increase in the past day, bringing its price to $2,48 per unit and outperforming Bitcoin, Ethereum, and even Solana in daily performance.
Source: CoinMarketCap
For many, this rally is particularly notable when compared to its direct competitors. Solana (SOL), for example, which ranks sixth among the most capitalized cryptocurrencies, is up 2,40% over the same period, trading at $189 at press time.
While recent narratives have highlighted XRP's decline from the coveted third spot to its current fifth position, with a market capitalization of approximately $149.200 billion, the investment community appears to have maintained its optimism. Indeed, this daily recovery puts XRP in tight competition with BNB, which currently holds fourth place with a market capitalization of $153.000 billion.
Winds of change: From trade tension to monetary hope
XRP's current performance cannot be understood without looking at the broader market context. Last week was particularly tough for assets considered risky. According to CoinMarketCap, nearly all of the top 10 cryptocurrencies closed lower, with XRP seeing a 5% drop and Solana a drop of over 10%.
As mentioned, this situation is due to a combination of factors, including a massive sell-off that shook the markets, which was aggravated by geopolitical tensions that pushed investors to seek refuge in safer assets.
But market sentiment is volatile and can change quickly. All eyes are now on the US Federal Reserve meeting on October 25. There is a growing consensus among experts and analysts that the Fed will cut interest rates by 25 basis points, a measure aimed at stimulating an economy showing signs of slowing. A rate cut traditionally makes fixed-income markets less attractive, which often leads to a flow of capital toward assets with greater growth potential, such as technology stocks and cryptocurrencies.
This expectation of cheaper money is creating a positive counterpoint to last week's pessimism. In this context, XRP has managed to stand out with a remarkable recovery. Although it has lost ground in the rankings and is now in fifth place, its rally over the last 24 hours reflects that the confidence of its followers remains intact. While Solana and other big names struggle to hold on, XRP is showing greater strength.
Overall, the crypto market is at an inflection point, with volatility taking center stage, but with clear signs that the narrative is shifting. XRP's case reflects this duality: the combination of a recent correction and hope for a more favorable monetary environment.
With the Fed's decision looming, XRP's price action is a reminder that in this dynamic market, opportunities and risks can change in a matter of hours. Meanwhile, the battle for leadership among altcoins continues apace.
