Ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting on March 19, the crypto market, including the top 20 cryptos to explode, is stable but still under pressure. Bitcoin has yet to rally and break above $90,000, finding critical support between $75,000 and $80,000.
Top altcoins like Ethereum, XRP, and Stellar (XLM) have also not been spared. XRP, though the third most valuable crypto, is trading below $3, stable in the last day but up nearly 7% in the past week of trading.
This expansion is propping up XLM, which is moving in lockstep with XRP. In the past week of trading, the coin has been up a decent 3% but is trading below local resistance at $0.40.
Usually, FOMC monetary policy decisions tend to influence risk assets, and XRP, XLM, and other crypto assets are likely to move. The question on everyone’s mind is: Will the FOMC policy decision kickstart an altcoin rally? Will XLM and XRP rip to fresh 2025 highs by the end of March?
What Will FOMC Crypto Impact Look Like?
Analysts and economists worldwide are aware of the profound impact of Federal Reserve monetary policy.
Its decisions on interest rates, quantitative easing, and forward guidance can easily sway investor sentiment.
If the FOMC and the Federal Reserve, for example, turn dovish, this time by slashing rates, capital will flow to Bitcoin and altcoins as investors prepare for high inflation.
Conversely, if the FOMC chooses to maintain the current high rates or even hike them, Bitcoin, XRP, and altcoins will likely dump. In this case, capital will move away from risk assets, mostly crypto assets, to value-preserving asset classes like Treasuries.
Recent macroeconomic news releases, such as inflation data, labor market reports, and even geopolitical events, will shape their decisions.
In December, the Federal Reserve slashed rates to 4.5% and is projected to slash rates twice, not thrice, as economists have projected, in 2025.
The result was a BTC and altcoin sell-off.
While prices recovered in January 2025 after the FOMC kept rates unchanged at 4.50%, with XRP rising to as high as $3.4, sellers have had the upper hand.
The crypto community expects the Federal Reserve to be tight, keeping rates elevated in 2025.
Accordingly, there is anxiety ahead of the March 20 FOMC announcement, with analysts aware that the monetary policy decision can trigger an altcoin rally or sell-off.
XRP and XLM Price Analysis : How Are Leading Altcoins Shaping Up
Altcoins are presently at or near key support levels. The uptrend remains for XRP and XLM, specifically, but a sell-off is risky if prices crack below March lows.
Prices have been moving down and sideways for the better part of Q1 2025.
If the FOMC chooses to raise rates against the community’s expectations, XLM and XRP will likely collapse.
On the other hand, any rate cut could spark a rally, lifting XRP to $3.4 and XLM to $0.40 in the coming days.
The leg up will be a massive boost for XRP and XLM.
Ripple has released its RLUSD stablecoin just as the United States plans to streamline laws around stablecoin issuance.
At the same time, the community expects the ongoing, multi-year case pitting Ripple against the United States SEC to end.
A favorable settlement, in which Ripple pays a smaller fine and XRP finds the needed clarity as a commodity, like Bitcoin, would catalyze the coin to print new all-time highs in 2025.
Given the direct correlation between XLM and XRP, Stellar will also rip to fresh highs as capital flows to these two of the best cryptos to buy in 2025.
Key Takeaways
- An FOMC dovish stance (rate cuts) could boost XRP to $3.4 and XLM to $0.40; hawkish moves (rate hikes) may cause collapses
- XRP benefits from RLUSD stablecoin release and potential SEC lawsuit resolution, enhancing its 2025 outlook
- XLM, correlated with XRP, could see fresh highs if favorable FOMC decisions and capital flows align
The post Will FOMC Pump Altcoin Markets? XLM Crypto and XRP Price Analysis Pre-FOMC appeared first on 99Bitcoins.
