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A market pundit shares his preferred XRP investment strategy amid the ongoing market bloodbath that triggered a 9% XRP collapse.
Notably, the crypto market took a hit following the Federal Reserve’s decision to cut interest rates by 0.25%. Despite expectations for a bullish outcome, the announcement triggered a “sell-the-news” event, causing widespread liquidations.
XRP bore the brunt of the market downturn, plunging by 9.91% yesterday to a low of $2.23, as it erased the gains from the RLUSD launch. So far, the altcoin has recovered slightly, trading at the $2.34 level. However, it remains in a very delicate position.
Fed Policy and Market Reactions
For context, the Federal Reserve‘s latest rate cut reduced interest rates to 4.5%, aiming to bolster economic growth. Nonetheless, this decision led to significant volatility across financial markets.
The U.S. stock market lost $1.5 trillion in value, while over $310 million in crypto liquidations were recorded within 24 hours. XRP did not escape this bloodbath. However, Amid the downturn, market pundit Oscar Ramos shared suggested that the dip presents an opportunity for accumulation.
In a video commentary, Ramos noted the impact of the Federal Reserve Chair Jerome Powell’s comments, particularly his stance against the central bank owning Bitcoin.
The Federal Reserve Chair confirmed that the bank is not allowed to own Bitcoin and they are not looking for a rule change on that. Powell’s remarks dampened market sentiment, raising concerns over the Federal Reserve’s future relationship with crypto.
Investment Strategy Amid XRP Price Slump
This contributed to the crypto market collapse. The ensuing decline in XRP’s price followed a period of heightened volatility. After peaking at $2.72, the token retraced to $2.23, marking a 17% drop within a day.
Despite the sell-off, Ramos highlighted that such corrections are typical in volatile markets and often create opportunities. He compared the current dip to the previous XRP downturn on Dec. 10, where the token recovered after a similar drop following Ripple CEO Brad Garlinghouse’s 60 Minutes interview.
The market pundit revealed that he personally doubled down on XRP during the recent price drop, citing his long-term bullish stance on the asset. However, he failed to provide any price projections.
He reassured XRP holders to remain patient and focus on dollar-cost averaging rather than reacting emotionally to market fluctuations. Nonetheless, he noted that he understands the position of those who instead choose to sell and take profits.
Ramos spotlighted the recent launch of RLUSD as a bullish factor. He shared a clip of Monica Long, Ripple’s president, discussing the potential of Ripple’s newly launched stablecoin, RLUSD.
She emphasized the growing demand for regulatory-compliant stablecoins, projecting the market to reach $3 trillion by 2028. Some believe Ripple’s focus on stablecoins, and diversification could play a critical role in driving XRP’s long-term value.
Broader Crypto Market Collapse
Meanwhile, in addition to XRP, the broader crypto market also faced steep losses. Bitcoin dropped from $108,000 to $100,000, marking a 7% decline. Ethereum saw major liquidations, with Binance recording the largest single liquidation worth $4.7 million in ETH perpetual futures.
Ramos pointed out that fear and uncertainty dominated the market following the Federal Reserve’s announcement. However, he encouraged investors to remain calm and focused on their long-term strategies. Currently, XRP trades for $2.35, down 6.97% over the last 24 hours.