XRP Outperforms Bitcoin While Dogecoin Extends Losses Ahead of U.S. CPI Data Release

XRP took center stage in the cryptocurrency market over the past 24 hours, outperforming Bitcoin (BTC) and other major cryptocurrencies. Meanwhile, Dogecoin (DOGE) led the losers’ pack as traders braced for the release of the U.S. Consumer Price Index (CPI) report, a critical indicator of inflation, due Wednesday.

What to Know:

• XRP Whale Activity: Whale deposits of XRP to exchanges reached a six-month high early Tuesday, signaling possible short-term bearish pressure.
• Bitcoin Stability: Bitcoin (BTC) held steady at around $98,000, maintaining its recent bullish momentum despite broader market fluctuations.
• Other Movers: Ether (ETH), BNB Chain’s BNB, and Cardano’s ADA dipped by up to 2%, while Dogecoin fell 4%. Shiba Inu (SHIB) and Floki (FLOKI) rose 1%, and the CoinDesk 20 index climbed 0.69%.
• Federal Reserve Impact: Fed Chair Jerome Powell reiterated that economic data would be pivotal in determining future interest-rate decisions, amplifying market focus on the CPI report.

XRP’s Surge and Whale Activity

XRP stole the spotlight in the cryptocurrency market, surging by 7% over the past 24 hours and outperforming Bitcoin and other major cryptocurrencies. Analysts attribute this outperformance to speculative optimism surrounding its adoption in cross-border payments and ongoing developments in its ecosystem.

This spike reversed earlier losses, following Ripple Labs’ announcement of receiving final U.S. regulatory approval for the launch of its RLUSD stablecoin. The stablecoin will operate on both the XRP Ledger and Ethereum networks, expanding its potential use in decentralized finance (DeFi) applications and strengthening the XRP ecosystem.

While the announcement triggered optimism, whale activity raised concerns. Over 2.66 billion XRP tokens were transferred to Binance in the past 30 days, marking the highest inflow since April 2024, according to CryptoQuant. Such large deposits often signal short-term selling intentions, potentially exerting downward pressure on XRP’s price.

CryptoQuant analyst maartunn noted, “Whale deposits can often indicate potential shifts in strategy, as these players hold significant market influence.” Historical trends show similar inflows preceded price declines in November 2023 and April 2024.

Dogecoin Extends Slide

In contrast, Dogecoin (DOGE) continued its downward trend, dropping 4% over the last 24 hours, leading losses among major cryptocurrencies. Despite slight gains in other memecoins like SHIB and FLOKI, DOGE’s decline reflects waning investor confidence ahead of the CPI report.

Federal Reserve and CPI Report

The U.S. Bureau of Labor Statistics is set to release November’s Consumer Price Index (CPI) data at 8:30 a.m. ET (13:30 UTC) on Wednesday. With inflation concerns still prominent, the report is expected to heavily influence Federal Reserve interest-rate decisions, potentially impacting crypto markets as 2024 unfolds.

Fed Chair Jerome Powell’s recent comments reinforced this, emphasizing the critical role of incoming economic data in shaping monetary policy. Last month’s CPI data suggested inflation remains a persistent challenge for the Fed, keeping markets on edge.