XRP Suffers Sharper Decline Than Ethereum Ahead of Fed Rate Decision

XRP (CRYPTO:XRP) has been hit harder by the impending Fed rate hike than Ethereum (CRYPTO:ETH), falling 9.4% in today's session compared to Ethereum's 2.9% decline.

This disparity is a significant concern for XRP investors, as the token's price has already fallen sharply over the past three weeks, from $1.70 to $1.28, as hike odds climbed from near 70% to above 90%. On-chain data shows whales sold or redistributed about 90 million XRP over the past week, and daily active addresses fell more than 90%, from roughly 388,000 to 38,000.

However, Ethereum has shown a different pattern, with buyers outpacing sellers on the network over the past week, even as the price fell. This suggests that Ethereum's decline may be driven more by broad market caution rather than direct selling pressure on the token itself.

The Fed's decision to hike rates today will be a key test of each coin's rate sensitivity, and experts believe that XRP is at higher risk of further declines if the Fed delivers the expected 25-basis-point increase. In contrast, Ethereum's larger market capitalization may help it absorb some of the selling pressure triggered by the rate hike.