Why is the price of XRP falling today?
XRP price is down today like other major crypto assets as traders anticipate a Federal Reserve rate hike this week.
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The price of XRP (XRP) is down today, mirroring trends elsewhere in the cryptocurrency market as traders await the Federal Reserve's rate decision later this week.
XRP Price Falls Amid Rising DollarOn July 24, the price of XRP fell 8% to $0.68, underperforming the 3.5% decline in the crypto market on the same day. The XRP/USD pair fell amid growing expectations that the Fed would hike interest rates by 25 basis points at its July 25-26 meeting.
XRP/USD versus daily crypto market performance chart. Source: TradingViewA higher rate environment is considered bad for cryptocurrencies like XRP. As a result, some traders abandoned large-cap cryptos and took refuge in safer assets like the US dollar, selling at the height of the market rally led by Ripple on July 13.
For example, the price of XRP soared 75% on July 13, but was unable to extend its gains above $1. Since then, the price of the token has fallen by 28%. In contrast, the US Dollar Index (DXY) rebounded nearly 2% over the same period.
Meanwhile, the correlation coefficient between DXY and XRP was -0.79 on July 24 from +0.25 on July 13, showing a greater likelihood that XRP will decline further if the dollar continues to rise in the coming months.
The daily correlation coefficient between DXY and XRP. Source: TradingView
XRP price is down today like other major crypto assets as traders anticipate a Federal Reserve rate hike this week.
Altcoin Watch
Join us on social networks
The price of XRP (XRP) is down today, mirroring trends elsewhere in the cryptocurrency market as traders await the Federal Reserve's rate decision later this week.
XRP Price Falls Amid Rising DollarOn July 24, the price of XRP fell 8% to $0.68, underperforming the 3.5% decline in the crypto market on the same day. The XRP/USD pair fell amid growing expectations that the Fed would hike interest rates by 25 basis points at its July 25-26 meeting.
XRP/USD versus daily crypto market performance chart. Source: TradingViewA higher rate environment is considered bad for cryptocurrencies like XRP. As a result, some traders abandoned large-cap cryptos and took refuge in safer assets like the US dollar, selling at the height of the market rally led by Ripple on July 13.
For example, the price of XRP soared 75% on July 13, but was unable to extend its gains above $1. Since then, the price of the token has fallen by 28%. In contrast, the US Dollar Index (DXY) rebounded nearly 2% over the same period.
Meanwhile, the correlation coefficient between DXY and XRP was -0.79 on July 24 from +0.25 on July 13, showing a greater likelihood that XRP will decline further if the dollar continues to rise in the coming months.
The daily correlation coefficient between DXY and XRP. Source: TradingViewWhat's Your Reaction?
