XRP Price Plummets Amid Inflation Fears and Potential Interest Rate Hikes

XRP's price has dropped significantly over the past day, down 3.53% to $1.06 and making it the second-biggest loser among the top ten cryptocurrencies. This decline is largely attributed to a broader market downturn as investors anticipate inflation-induced interest rate hikes.

A recent conflict between Iran and the US has led to an increase in oil prices, which have risen by over 8-9% in the past 24 hours. This has renewed concerns about macro inflation fears. The US Federal Reserve attributed part of the current inflation to the artificial intelligence (AI) boom at its June Federal Open Market Committee (FOMC) meeting.

Fed Governor Christopher Waller warned that if tomorrow's Consumer Price Index (CPI) reading is high, the Fed could be forced to hike interest rates. This has put pressure on XRP's price, which broke below the critical $1.07 Fibonacci support. Long liquidations over the past 24 hours totaled $6.67 million, according to CoinGlass.

The next support levels for XRP are the $1.00 psychological floor and the 18.75% Fibonacci level at $0.9980. However, one analyst has suggested that XRP's price could potentially increase by 60,000% from a historical perspective.