After years of delivering underwhelming returns, Ripple’s XRP token finally broke out of its shackles in 2025. The asset’s price has risen by 409.2% since September 2024, according to CoinGecko XRP data. XRP has come into the spotlight as a major contender to be the best-performing crypto of this year. Although XRP’s price has faced a steep correction over the last few days, the asset may be aiming to breach the $4 mark after a possible interest rate cut this month. Let’s discuss more.
Will XRP Hit $4 After an Interest Rate Cut?
Interest rate cuts often lead to investors making more risky investments as borrowing becomes easier. We are less than two weeks away from the Federal Reserve’s next rate announcement. According to CME’s FedWatch tool, there is a 97.6% chance that the Federal Reserve will cut interest rates by 25 basis points. Such a development could lead to XRP witnessing a massive price surge.
XRP has to rally by 41.84% to hit the $4 target from current price levels. While the required growth may seem significantly large, it is not something the asset has not delivered before. XRP hit an all-time high of $3.65 on July 18. The asset’s price has fallen by 22.7% from its July peak. If XRP reclaims its all-time high level once again, it may very easily breach the $4 target.
Also Read: XRP Could Hit $16 by End of 2025 as UN Endorses Ripple’s Blockchain
There is also a high chance that the SEC will approve a spot XRP ETF sometime this year. An ETF approval will likely lead to a surge in institutional inflows for the asset. Institutional money has been a key driver for Bitcoin (BTC) and Ethereum (ETH) this cycle. A similar pattern could emerge for XRP as well. Such a development could propel XRP’s price beyond the $4 mark.