XRP Plunges Below Weekly Low as Fed Decision Looms
XRP's price has dropped below its weekly low as markets await the Federal Reserve's interest rate decision. The current expectation is for a hike in rates, from 3.50-3.75% to 3.75-4.00%, driven by higher-than-expected inflation readings and rising oil prices.
The CLARITY Act, a proposed market structure bill, also put pressure on the market, with Ripple CEO Brad Garlinghouse saying it 'stings' that the Senate fell short of the votes needed to advance it.
The derivatives market has seen significant activity ahead of the Fed decision, with trading volume jumping 41.79% and open interest dropping 8.60%. This suggests traders are repositioning and de-risking rather than building new exposure.
Options activity shows a mixed story: while volume dropped, open interest rose, indicating traders are holding onto existing positions.
The OI-weighted funding rate has cooled significantly since August, dipping briefly negative around September 9 and again near September 13. This suggests excess long leverage has been cleared out ahead of the Fed decision.