XRP, the third-largest cryptocurrency, recently hit a new record of $3.65 before experiencing a significant drop of approximately 15%, trading at $3.09. This decline is attributed to broader market trends where many major altcoins, such as Solana and Dogecoin, also fell. Market analysts, including Katie Talati from Arca, suggest the drop may stem from macroeconomic factors and market exhaustion. Investors are reacting to uncertainties regarding potential interest rate cuts by the U.S. Federal Reserve, which, if implemented, could benefit risk assets like crypto by increasing liquidity. Despite the recent downturn, XRP's surge last week was seen as a validation of Ripple's strategy for a regulatory-compliant blockchain. With the end of a lengthy legal battle with the SEC, some analysts believe XRP remains a favorite among retail investors and retains potential for future growth. The wider context includes a 4.5% increase in the U.S. money supply, but market performance has not mirrored this trend, leading to questions about market dynamics.

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