Summary
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XRP Price at Critical Juncture: XRP’s price dropped 5% to $2.06, testing the $2 support level. The 200-day EMA at $1.94 is the next support, and a descending triangle pattern suggests a potential further decline if these levels break. Recovery requires reclaiming the 2.40 range.
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Goldman Sachs Forecasts Increased Fed Rate Cuts: Goldman Sachs adjusted its inflation outlook upwards and now anticipates the Fed will cut interest rates three times in the second half of 2025. This is a more aggressive prediction than the Fed’s guidance and market expectations. Historically, rate cuts can boost crypto markets.
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RLUSD Stablecoin Leads in Capital Efficiency: Ripple’s RLUSD stablecoin shows the highest volume-to-TVL ratio at 37%, outperforming major stablecoins like Tether (36.45%), USDC (15.02%), and PayPalUSD (6.76%). The RLUSD market cap has reached $243.77 million since its December 2024 launch.
The cryptocurrency XRP is currently under pressure, having experienced a 5% decline on March 31st, pushing its price to around $2.06.
This downturn intensifies the risk of XRP breaking below the critical $2 threshold, a level it has long maintained.
Technical analysis points to further potential weakness: the 200-day Exponential Moving Average (EMA), sitting at $1.94, serves as the immediate crucial defense for XRP.
Historical patterns indicate that breaching this EMA often precipitates accelerated price declines.
Adding to the bearish signals, a descending triangle pattern is nearing its convergence point, typically suggesting an imminent breakdown as support levels struggle against sustained selling pressure.
Should XRP decisively fall below $2, and crucially, if the 200 EMA fails to hold, the next significant support zone is anticipated to be between $1.80 and $1.85. For XRP to reverse this negative trajectory, it needs to convincingly climb back into the 2.40 range and solidify gains above it with robust trading volume.
In the absence of a broader, market-wide positive trigger, the likelihood of such a recovery appears limited, casting doubt on XRP’s ability to sustain its $2 valuation.
As of now, XRP is trading at $2.12, showing a modest 1.09% increase over the last day according to CoinMarketCap data.
In broader economic news, investment banking giant Goldman Sachs has adjusted its inflation outlook, which has implications for the cryptocurrency market.
Ripple’s RLUSD Stablecoin Demonstrates High Capital Efficiency
As highlighted in a recent social media post by Wu Blockchain, Goldman Sachs now anticipates the core Personal Consumption Expenditures (PCE) index, a key inflation metric, to reach 3.5% this year, an upward revision from their previous 3.0% forecast.
Responding to the anticipated effects on economic growth and employment, Goldman Sachs now projects that the Federal Reserve will implement three interest rate cuts within the latter half of 2025.
This prediction is notably more dovish than both the Federal Reserve’s forward guidance and prevailing market expectations.
Federal Reserve officials, during their March meeting, had suggested the possibility of rate reductions later in the current year, but Goldman Sachs’ prediction points to a more significant easing of monetary policy.
With important labor market data releases and a forthcoming speech from Federal Reserve Chairman Jerome Powell on the immediate horizon, market observers are keenly awaiting macroeconomic signals that could shape market trends.
Historically, reductions in interest rates have been beneficial for riskier asset classes, including cryptocurrencies.
Lower interest rates can decrease borrowing costs, potentially stimulating increased investment and consequently boosting buying pressure within the crypto sector.
Turning to stablecoin news, Ripple‘s recently launched stablecoin, RLUSD, is garnering attention for its impressive capital efficiency.
Vet, a validator on the XRP Ledger’s decentralized Unique Node List (dUNL), publicly lauded RLUSD’s performance in a recent post on X.
Vet stated that “RLUSD currently demonstrates the highest capital efficiency among all stablecoins in the crypto market.
Its volume-to-TVL ratio is an impressive 37%, significantly surpassing other leading stablecoins.
” Data sourced from CoinMarketCap from the preceding day confirms this, with Ripple USD (RLUSD) registering a volume-to-TVL ratio of 39.49%.
In comparison, Tether (USDT) reported 36.45%, while USD Coin (USDC) and PayPal USD (PYUSD) recorded much lower figures of 15.02% and 6.76% respectively.
Since its inception in December 2024, RLUSD has rapidly grown its market capitalization to $243.77 million, exceeding internal growth projections at Ripple.
Ripple executive Jack McDonald has indicated that the company generally expects RLUSD to break into the top five stablecoins by the year’s end, echoing earlier projections from Ripple CEO Brad Garlinghouse.
Also Read: Ripple SEC Case End Opens Door for XRP ETF Analyst Foresees Approvals
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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