XRP Tumbles Below $1.05 Amid Fed Rate Decision Jitters

Ripple's XRP token continues to face pressure as it trades below $1.05 on Tuesday, marking its second consecutive day of declines.

This downturn is in line with broader risk-off sentiment as investors wait for the Federal Reserve's interest rate decision, which is expected on Wednesday.

The market has priced in a 36% chance of a rate hike, and Loretta Mester, former Cleveland Fed President, suggests that central bank officials may need to adjust policy to combat inflation. Chair Warsh has been vocal about not tolerating inflation, adding to the uncertainty.

Despite this, demand for XRP derivatives remains high, with futures Open Interest climbing to 2.25 billion XRP on Tuesday, indicating sustained interest in the token.