XRP Surges as Ripple Rides Momentum Amid Fed Rate Speculation

XRP is making notable strides in the crypto market as Ripple capitalizes on growing momentum stirred by speculation around upcoming Federal Reserve rate decisions. Ripple’s native token has gained fresh investor attention, especially with recent political and economic statements intensifying hopes for a more risk-on attitude in global financial markets.

Market volatility has returned with force. Amid fluctuating crypto valuations, XRP has emerged with a 5% gain in the past 24 hours, putting it ahead of several peers. This surge comes just as macroeconomic indicators suggest the Federal Reserve might ease interest rates in September—a move that could redirect capital toward digital assets like Ripple’s XRP.

Driving some of this optimism is commentary from U.S. President Donald Trump, who has called on the Fed to aggressively lower rates. Trump’s social media post urged immediate rate reductions while criticizing Fed Chair Jerome Powell’s past actions. Investor sentiment reacted quickly, with Ripple’s XRP responding positively along with other major cryptocurrencies.

In a recent post, Trump stated that Fed policy lagged economic performance. He emphasized the economic strength of the U.S., saying it’s so robust it has already outpaced Powell’s cautious approach. He even went as far as to suggest he might pursue legal action against Powell for mismanaging Fed building renovations—an assertion later confirmed by the White House.

These declarations had immediate ripple effects—pun intended—across the crypto sphere. Traders interpreted Trump’s messages as support for liquidity expansion, which often leads to increased risk appetite. Naturally, digital assets like XRP benefit in such environments, especially when uncertainty about traditional financial systems prevails.

Adding fuel to the fire, inflation data for July showed a year-over-year increase of 2.8%, slightly higher than June’s 2.7% rise, according to analysts. Yet, this modest increase was interpreted positively by markets, indicating stabilizing price pressures. This perception has led to a 96% expectation that the Federal Reserve will announce a 25-basis-point cut, as indicated by CME’s FedWatch tool (CME’s FedWatch tool).

As these figures circulated, XRP remained among the top gainers, riding a wave of renewed enthusiasm. Ethereum rose by 10%, nearly reaching its all-time high, while Solana jumped 15%. Even Dogecoin got a boost, climbing 12% as risk-on behavior dominated ahead of key Fed announcements. XRP’s 5% increase may seem modest compared to these numbers but underscores its resilience and investor confidence in Ripple’s ecosystem.

Commentators are keeping a close eye on the situation. IG senior technical analyst Axel Rudolph remarked that the crypto rally was driven by inflation readings hitting expectations, offering reassurance to investors. Similarly, cryptographic strategist Nic Puckrin suggested the near-term market environment may continue with range-bound trading due to unresolved global issues, including interest rate policy and international trade agreements. But should further clarity arise, XRP stands well-positioned to capitalize.

Meanwhile, bitcoin’s recent performance—fluctuating near $121,000 after a brief dip—is emblematic of broader market caution. Bitcoin lost most of its early-week gains following an initial surge. FxPro analyst Alex Kuptsikevich noted that traders might be fearing another false breakout similar to last month’s choppy sessions. This caution, however, doesn’t seem to have affected XRP to the same extent.

Ripple and its token XRP are clearly gaining from renewed macroeconomic tailwinds. As investors weigh the potential for a September rate cut and evaluate the implications of ongoing geopolitical maneuvering, XRP is benefiting from a favorable blend of market momentum and investor sentiment. If the Federal Reserve indeed moves forward with a cut next month, Ripple’s standing within the broader financial technology space could see further elevation.

Related: XRP Price: $12M Max Pain for Bears

With rising institutional interest and a renewed focus on accessible digital finance solutions, Ripple appears primed to ride this bullish sentiment into the final quarter of the year—bringing XRP along for the climb.