XRP, the digital asset associated with Ripple, advanced significantly over the weekend, posting a 4.6% gain in the last 24 hours to trade around $1.47. Data from major exchanges showed the token fluctuating between $1.40 and $1.47, with a substantial 24-hour trading volume of approximately $2.47 billion.
While traditional U.S. equity markets were closed, the cryptocurrency market continued its 24/7 operation. The weekend's price action is expected to influence the broader risk sentiment at the start of the new trading week. Investors are closely monitoring inflation indicators for clues on the Federal Reserve's potential to ease monetary policy without reigniting price pressures.
The latest Consumer Price Index (CPI) report showed a 0.2% monthly increase for January, with the annual rate cooling to 2.4%. Core CPI, which excludes volatile food and energy prices, rose 0.3% month-over-month and 2.5% year-over-year. Some analysts noted that while the trend is moderating, underlying price pressures remain elevated, even as market expectations for a potential rate cut in June have increased.
This macroeconomic backdrop provided a lift for digital assets into the weekend. Alongside XRP's Friday gain of 2.8%, other major cryptocurrencies like Ether and Solana also posted strong advances of 5.4% and 8.3%, respectively.
Fundamental developments are also in focus. Ripple has partnered with asset manager Aviva Investors on initiatives involving tokenized fund structures, utilizing the XRP Ledger. Tokenization refers to the process of converting traditional financial assets into digital tokens on a blockchain.
Despite the positive momentum, caution persists in the market. Analysts have warned that the crypto sector remains cyclical and susceptible to volatility. Some note that a sustained recovery may require a resumption of inflows into spot Bitcoin exchange-traded funds (ETFs). The thin liquidity typical of weekend trading can also amplify price swings in either direction.
The next significant test for the market will be the release of the Personal Consumption Expenditures (PCE) price index on February 20. As the Fed's preferred inflation gauge, this data will be critical for shaping interest rate expectations. Traders will be watching to see if XRP can maintain its weekend gains and whether optimism around potential rate cuts translates into sustained demand rather than a temporary rally.
