A market expert shares his favorite XRP investment strategy amid the ongoing market bloodbath that has triggered a 9% collapse in XRP.
Notably, the crypto market was hit following the Federal Reserve’s decision. decision reduce interest rates by 0.25%. Despite expectations of a bullish result, the announcement triggered a “news sell-off” event, causing widespread liquidations.
XRP bore the brunt of the market downturn, plunging 9.91% yesterday to a low of $2.23, erasing gains from the RLUSD launch. So far, the altcoin has recovered slightly, trading at the $2.34 level. However, she remains in a very delicate position.
Fed Policy and Market Reactions
For context, the Federal ReserveThe latest interest rate cut reduced interest rates to 4.5%, aiming to support economic growth. Nevertheless, this decision led to significant volatility in the financial markets.
The US stock market lost $1.5 trillion in value, while over $310 million in crypto liquidations were recorded in 24 hours. XRP did not escape this bloodbath. However, amid the downturn, market expert Oscar Ramos common suggest that the decline presents an accumulation opportunity.
In a video commentaryRamos highlighted the impact of Federal Reserve Chairman Jerome Powell’s commentsnotably its position against the central bank possess Bitcoin.
The chairman of the Federal Reserve has confirmed that the bank is not allowed to own Bitcoin and is not looking to change the rules on this. Powell’s remarks dampened market sentiment, raising concerns about the Federal Reserve’s future relationship with crypto.
Investment strategy amid falling XRP prices
This contributed to the collapse of the crypto market. The subsequent drop in XRP price followed a period of increased volatility. After peaking at $2.72, the token returned to $2.23, marking a 17% drop in one day.
Despite the selloff, Ramos emphasized that such corrections are typical of volatile markets and often create opportunities. He compared the current decline to XRP’s previous downturn on December 10, where the token recovered from a similar decline after 60 Minutes Interview with Ripple CEO Brad Garlinghouse.
The market expert revealed that he personally has doubled on XRP during the recent price decline, citing its long-term bullish stance on the asset. However, he did not provide any price predictions.
He reassured XRP holders to remain patient and focus on cost averaging rather than reacting emotionally to market fluctuations. Nonetheless, he stressed that he understands the position of those who instead choose to sell and make a profit.
Ramos pointed to the recent launch of RLUSD as a bullish factor. He shared a clip of Monica Long, president of Ripple, discussing the potential of Ripple’s new stablecoin, RLUSD.
She highlighted 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 the long-term value creation of XRP.
Wider crypto market collapse
Meanwhile, besides XRP, the broader crypto market also suffered heavy losses. Bitcoin abandoned from $108,000 to $100,000, a drop of 7%. Ethereum saw major liquidations, with Binance recording the largest single liquidation worth $4.7 million in ETH perpetual futures contracts.
Ramos noted 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 is trading at $2.35, down 6.97% in the last 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
