Rise in XRP Value Prior to Fed Conference Explanation

In a dramatic turn of events, the XRP price has experienced a significant surge, breaking out of its prolonged consolidation range and reaching new heights. The rally was driven by a combination of macroeconomic factors and technical flow, as well as increased institutional interest in the cryptocurrency.

Charts have shown a steep rise in the cumulative volume delta, indicating strong buyer dominance in the market. This trend was further highlighted by Dom (@traderview2) who reported a +10M XRP net buy pressure in just 15 minutes.

The surge comes after weeks of flat trading, suggesting that the market has been building up momentum for some time. This momentum has been strengthened by the alignment of institutional and retail activity, with XRP price among the most reactive tokens.

The macroeconomic backdrop is seen as favorable for cryptocurrencies, particularly as lower rates ease capital costs and weaken the dollar. This weakening of the dollar generally supports digital asset prices, and markets expect a rate cut during the upcoming Federal Reserve meeting scheduled for September 17. Some analysts even suggest the Fed might consider a 50-basis-point reduction instead.

The expected rate cut, along with the potential approval of an XRP-based ETF, are seen as key catalysts for the current rally. Institutional investors have been actively positioning themselves in the XRP market ahead of these events. Major market participants have been accumulating XRP on-chain, while banks and payment providers like Santander, SBI Holdings, and Pyypl, involved through RippleNet and On-Demand Liquidity services, have also shown increased interest.

However, direct institutional trading details are limited. What is clear, though, is that the alignment of these factors has created a strong bullish sentiment in the market. Short-term momentum remains strong as buyers continue to accumulate, with data indicating a 99% probability of a 25-basis-point rate cut.

The XRP price surged past the $2.85 mark today, briefly testing $2.90 before pulling back slightly. Liquidity thinned near $2.85, helping XRP price push higher. Technical indicators also support a bullish continuation pattern for the XRP price.

As the September 17 Fed decision approaches, market participants are positioning themselves in advance, hoping to capitalise on the anticipated rate policy shift. The alignment of these factors suggests that the XRP price action could be crucial in the coming days.