XRP has experienced a significant downturn, dropping to $3.09 after reaching a record high of $3.65 last week, marking a 15% decline. This decrease comes amidst a broader market drop, affecting many altcoins, including Solana and Dogecoin. Analysts attribute the decline to macroeconomic factors and market exhaustion. Katie Talati from Arca highlighted that sharp price movements are common in crypto, leading to pullbacks. Investors are currently anticipating potential interest rate cuts by the U.S. Federal Reserve, as lower rates typically favor risk assets. The uptick in liquidity, indicated by a 4.5% year-over-year increase in the U.S. money supply to approximately $22 trillion, has not bolstered crypto prices as historically expected. XRP’s recent high is seen as a validation of Ripple's efforts for a compliant blockchain for institutions, especially after a prolonged lawsuit victory against the SEC. Despite the drop, Talati believes XRP could regain momentum, appealing particularly to retail investors who may now consider the asset less risky.

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