Altcoins are showing a new strength following the recent US Consumer Price Index (CPI) data release. A mild inflation increase of 0.1% was observed in May. XRP, Hyperliquid (HYPE), and Virtuals Protocol (VIRTUAL) are gaining momentum among investors transitioning to investments with high growth potential in a stable interest rate environment.
XRP is riding the Bitcoin's strong trend, HYPE is dominating the perpetual market with record-breaking returns. VIRTUAL is leading the AI narrative after launching its first Ethereum native agent. As risk appetite returns and capital rotates towards strong narratives, these altcoins are prepared to benefit if their momentum is maintained.
XRP
XRP's strong 0.91 correlation with Bitcoin suggests it could benefit from BTC's movement towards $110,000. Particularly, recent US CPI data showed a 2.4% inflation increase, which was lower than expected.
"Despite all pessimistic predictions, we are now almost halfway through the year, and inflation remains under control. Today's CPI report confirms this. Inflation is not as bad as everyone feared, and risk assets will like this confirmation." – Nick Purin, cryptocurrency analyst, investor, and founder of The Coin Bureau, told BeInCrypto.
With short-term rate cuts becoming less likely, market conditions appear stable enough to support additional risk appetite. This provides room for altcoins like XRP to rise.
XRP is already showing strong momentum. The RSI is positioned above neutral, and buying pressure is increasing. If it can break through the $2.35 resistance, it could rally to the next major level of $2.48.
This momentum is also supported by increasing institutional interest. Companies like Webus and VivoPower are building large XRP reserves. This is for utility purposes, not speculation. They are anticipating XRP's fast and affordable cross-border payment role and Ripple's expanding ecosystem.
The integration of Ripple's stablecoin RLUSD adds additional credibility to XRP's payment potential, especially since each RLUSD transaction consumes XRP.
While risks like volatility and low validator distribution remain, breaking $2.35 could strengthen XRP's growth narrative and promote further increases in the current macro environment.
Hyperliquid (HYPE)
Hyperliquid (HYPE) is prepared to benefit from the current macro environment. With inflation rising moderately and rate cuts temporarily off the table, this often drives risk appetite across altcoins.
HYPE is already trading at all-time highs for several days, and as Bitcoin approaches $110,000, capital rotation into high-performance altcoins like HYPE could accelerate.
Hyperliquid, supported by dominant market share in the perpetual market, weekly trading volume of $5-7.5 billion, and monthly revenue of around $65 million, has established itself as one of the most profitable platforms in the last 30 days, following Tether and Circle.
Technically, HYPE continues to maintain strength. Currently holding above $40, with short-term moving averages positioned above long-term moving averages. Momentum indicators RSI and BBTrend suggest stabilization after a short correction.
If this trend continues, HYPE could soon break through the $45 resistance. And potentially test the $50 level for the first time.
With the token's recent Binance US listing and increasing speculation about full Binance listing, HYPE is in a strong position to extend its rally.
Virtuals Protocol (VIRTUAL)
As investors seek high growth potential beyond Bitcoin, VIRTUAL stands out for launching decentralized AI agents on Ethereum, Base, and Solana.
The recent launch of I.R.I.S., the first fully integrated AI agent with Ethereum Layer 1, developed in collaboration with Nethermind, adds significant technical credibility.
With Ethereum.org acknowledging the launch and stating "Ethereum is for AI", VIRTUAL is now at the forefront of the on-chain AI movement. This is particularly attractive during a risk appetite rotation.
The token's recent performance reflects momentum: VIRTUAL has risen almost 25% in the last 7 days, the largest increase among major AI tokens.
Technical indicators maintain strength above previous support zones, supporting further increases. If buying pressure continues, it could break through towards $2.58.
