Ripple Price Drops Below $1.20 Amid De-Risking Sentiment

Ripple's (XRP) price has been under pressure in recent days, with traders weighing on sentiment as they de-risk. The Federal Reserve's hawkish stance and hints of a tighter monetary policy have contributed to this trend. XRP's spot Exchange-Traded Funds (ETFs) remained quiet, without any notable flows recorded recently, suggesting institutional investors are cautious.

The Crypto Fear & Greed Index has dropped to 15 in the Extreme Fear territory, down from 22 the day before, indicating that investors are becoming increasingly risk-averse. XRP futures Open Interest (OI) has also decreased, signaling a reduction in market participants' confidence in the cryptocurrency's near-term trajectory.

XRP is trading below $1.20, with short-term support at $1.16 intact. However, the Moving Average Convergence Divergence (MACD) histogram on the daily chart suggests that downside momentum may be easing rather than accelerating. The Parabolic SAR at $1.08 marks a significant support level, and a daily close below this could expose XRP to renewed selling pressure.