On July 18, Ripple's XRP token soared to an all-time high of $3.65. This popular cryptocurrency reached new heights after more than seven years. The price of XRP has dropped over 20% from its recent peak. According to CoinGecko, XRP fell 11% in the past week, down 2.8% on the 14-day chart, and decreased 16% last month. Despite the pullback, the asset still rose 0.7% in the past 24 hours, accumulating a 387.7% increase since August 2024.
Will XRP reach a new all-time high after the interest rate cut in September?
According to the Chicago Mercantile Exchange (CME) FedWatch tool, the likelihood of the Federal Reserve cutting interest rates by 25 basis points in September is 81.2%. A rate cut could lead to a surge in venture capital investments. Such a development could drive XRP's price to soar.
Although the likelihood of an interest rate cut next month is high, it is worth noting that the probability of a rate cut on the CME FedWatch platform has significantly decreased over the past few days. The probability was around 96%. A few days ago, this number dropped to 84%. It has since fallen to 81%. As the Jackson Hole meeting approaches, this number may continue to decline.
In recent years, XRP has struggled to gain momentum due to the SEC's lawsuit against Ripple. Earlier this month, the lawsuit was completely resolved. With the lawsuit concluded, if market conditions are favorable, XRP may continue to reach new all-time highs.
XRP has several spot ETF applications awaiting approval from the U.S. Securities and Exchange Commission (SEC). Approval of the ETF is likely to attract significant institutional capital into the project. Bitcoin (BTC) has repeatedly set new all-time highs after ETF approvals. XRP may experience a similar situation.
