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XRP, the seventh largest cryptocurrency by market capitalization, is trading in green against a backdrop of several cryptocurrencies that are in red as investors await the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to lower interest rates for the first time since 2020.
Save for Tron (TRX), which was up 1.01% in the last 24 hours, XRP is outperforming the rest of the top 10 cryptocurrencies, which mostly traded in losses, up 2.3% in the past day to trade at $0.586. The seventh largest cryptocurrency by market cap is up 9% weekly.
The Fed is scheduled to meet on Tuesday and Wednesday, and it is largely expected to cut interest rates for the first time since the beginning of its hiking cycle in March 2022. A cut this week would be a pivotal move, as such a move is deemed beneficial for risk assets such as cryptocurrencies.
Following a profit-taking move after three days of sharp rises, XRP rebounded significantly on Sept. 16, reaching highs of $0.591. In the short term, the market will watch for a decisive break above $0.60 and $0.63 for the continuation of XRP's bullish momentum.
On the other hand, support is envisaged near the daily moving average of 50 and 200 at $0.569, and $0.55 in the event of a price fall.
Eyes on Fed rate decision
This week, all eyes are on the Federal Reserve, which is almost certainly going to decrease interest rates. The decision will be announced on Wednesday when the two-day meeting concludes. This would be the first rate cut since the Fed started raising interest rates in March 2022.
Investors will also be seeking hints about the interest rate outlook, particularly if further cuts are expected this year. After this week's summit, two more are scheduled for 2024.
The biggest uncertainty in markets remains the size of the Fed's rate cut on Wednesday. Per CME Group's FedWatch tool, traders were last pricing in a 67% chance of a 50 basis point drop, up from last week's 25 basis point cut.