XRP Rebounds on Market-Wide Altcoin Tailwinds Ahead of Fed

Ripple (XRP) rebounds by about 1% over the last 24 hours as sell pressures eased. With the positive price movement, the altcoin has outperformed the broader crypto market’s +0.52% gain.

The rebound is significantly driven by market-wide altcoin tailwinds ahead of the U.S. Federal Reserve rate decision on Wednesday. XRP is hovering around $1.90 on Tuesday as data show trading volume is down by a quarter to $2.5 billion at the time of writing.

Trading data showed that today’s price appreciation reverses a 7-day downtrend posted by XRP but aligns with a 30-day uptrend.

According to crypto analysts, XRP’s rise reflects a confluence of market-wide tailwinds, institutional validation, and technical support, though leverage risks linger. For holders, this signals resilience but warrants monitoring of Bitcoin’s momentum and exchange-traded fund (ETF) flows.

The market has formed a consensus that any dovish shift could amplify crypto rallies following a sharp capital rotation that plunged the entire market value of crypto down below $3 trillion level.

Bitcoin’s 0.8% rally to $88.3K ignited broad crypto gains, with Ethereum (+2.5%), Solana (+1.8%), and mid-caps like Axie Infinity (+33.6%) surging. XRP’s 1.1% rise reflected this risk-on shift.

Altcoins often rally when Bitcoin stabilizes, as capital rotates toward higher-beta assets. XRP benefited from this momentum, especially with global crypto fear sentiment at 29 – Extreme Fear- which historically precedes rebounds.

Providing the resting point for the rally, XRP spot ETFs recorded $7.76 million in net inflows on January 26, outpacing Bitcoin’s $6.84 million.

This follows Ripple’s regulatory wins, including a U.S. court ruling affirming XRP’s non-security status. Crypto analysts explained that Institutional inflows validate XRP’s legitimacy and create buy-side pressure.

ETF flows act as a liquidity tailwind, particularly as traditional finance integrates crypto via regulated products. XRP traded near $1.90, testing a long-term support zone around $1.85. Zenith Bank Climbs as Investors Price in Acquisition Move