The Fed's preferred inflation gauge came in lower than expected on Friday, contributing to the market's rebound.

On-chain data also suggests accumulation by large holders referred to as "whales," who have been buying up XRP during the dip.

The Fed's preferred inflation gauge came in lower than expected on Friday, which seemed to take some of the sting out of the market's disappointment with the Fed's interest rate announcement on Wednesday, contributing to the market's rebound.

Core PCE price index rose 4.3% year-over-year in November, lagging behind economists' projections of 4.4% and December's reading of 4.4%. Economists polled by Dow Jones had anticipated a 0.2% monthly increase in the core PCE from November, aligning with the reported data.

The personal consumption expenditures (PCE) price index, which excludes volatile food and energy components, serves as the Fed's primary inflation indicator.

On the other hand, consumer spending numbers for November came in higher than anticipated. Real personal spending, which takes inflation into account, rose 0.3%, exceeding economists' predictions of a 0.1% decrease.

In December, consumer spending increased by 0.6%, and economists had projected a 0.5% rise.

The University of Michigan's final reading of the consumer sentiment index for December also brought good news, reaching 64.6 to tie the best reading since April 1983. Economists had anticipated a slight decline to 64.0 from the preliminary reading.

At the same time, the University of Michigan's inflation expectations for the next 12 months rose to 4.4%, aligning with November's reading. Economists had projected a slight decrease to 4.1%.

However, long-term inflation expectations, measured over the next 5 years, fell to 2.9%, lower than the anticipated 3.0 and down from 3.1 in November.

This round of economic data will be closely examined by Fed officials as they prepare for their next interest rate decision, scheduled for January 25-26.

After raising interest rates by a quarter-point this week to a range of 5 to 5.25%, the Fed signaled that it might pause further rate hikes.

Despite the positive economic data, the stock market experienced a turbulent week, with the Dow Jones Industrial Average rebounding 3.9% this week, while the S&P 500 rose 3.3%, and the NASDAQ Composite gained 2.8%.

In crypto news, on-chain data suggests accumulation by large holders known as "whales," who have been buying up XRP during the dip.

Within the last 24 hours, blockchain data tracker Whale Alert reported 99,999,977 XRP being transferred between unknown wallets, valued at approximately $222,109,105.

According to crypto analyst Ali Martinez, these whales have acquired around 80 million XRP since the price correction began on December 17.

On the downside, $1.90 is a critical level for bulls to defend because a breach below it might send XRP to the 50-day SMA at $1.59.

At the time of writing, XRP was trading at $2.35, showing an increase of 5.03% in the past 24 hours. The coin had reached a high of $2.38 today.

Currently, the daily RSI is just above the midpoint, which suggests range-bound trading in the near term. XRP may oscillate between $1.90 and $2.72 for a little more time before a fresh move. A surge past $2.73 might kickstart a fresh uptrend targeting $3 and beyond.

In positive XRP Ledger news, the Multi-Purpose Token (MPT) on XRP Ledger has been successfully audited by Softstack GmbH with zero critical issues found. This marks an important step in ensuring robust security. XRPL's MPT token standard enables efficient tokenization and supports diverse digital assets on a secure blockchain platform.