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- Risk sentiment across financial markets remained subdued following conflicting statements from US and Iranian officials.
- XRP price drops below $1.0 if the risk continues.
Ripple’s XRP remained under pressure on Wednesday, trading below $1.10 and maintaining a bullish outlook.
The return-focused cryptocurrency failed to extend its retest earlier in the week as investors reacted to global uncertainty surrounding talks between the United States and Iran.
The US-Iran mix shows uncertainty in the oil market
Risk sentiment in financial markets remained volatile following conflicting statements from US and Iranian officials after the first round of peace talks held in Switzerland.
US Vice President JD Vance said late Monday that Iran had agreed to allow inspectors from the International Atomic Energy Agency (IAEA) to return to the country. However, Iranian officials have denied the claims, insisting that Tehran has not made any further progress in the negotiations.
Iran’s chief negotiator, Mohammad Bagher Ghalibaf, said the United States had agreed to release about $12 billion in frozen Iranian goods.
Meanwhile, Donald Trump has warned reporters that Washington will take action if Iran fails to comply with the deal.
These conflicting messages have contributed to risk-aversion in all cryptocurrency markets, reducing the value of digital assets and strengthening bearish pressure on XRP.
Business sentiment in the cryptocurrency market remains weak despite a slight change in confidence.
The Crypto Fear & Greed Index registered a reading of 23 on Monday, remaining firmly in the “Extreme Fear” sector. Although the list improved slightly from the 20 recorded the previous day, market participants continue to be cautious amid economic and national uncertainty.
The reduced sentiment suggests that traders remain reluctant to aggressively accumulate risk assets, raising the possibility that long-term rallies could face pressure to sell.
XRP price prediction: Bears continue to dominate the trend
From a technical perspective, XRP continues to show a bearish trend on the daily time frame.
The indicator is trading well below its key Exponential Moving Averages (EMA), including the 50-day EMA at $1.25, the 100-day EMA at $1.35, and the 200-day EMA at $1.56.
XRP is also below the middle Bollinger Band near $1.15, strengthening the current bias.
Momentum signals also support caution. The Relative Strength Index (RSI) hovers around 38, indicating a weakening of the bullish trend without reaching a high.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains slightly positive around the zero line, indicating a long-term stability rather than a reversal.
In order for XRP to regain momentum, consumers must overcome several key areas.
The first challenge lies in the middle of the Bollinger Band around $1.15, followed by resistance at the upper Bollinger Band around $1.22.
Further, the 50-day EMA at $1.25 and the low of $1.28 form a key area. Additional resistance levels are at the 100-day EMA near $1.35 and the 200-day EMA near $1.56.
A break above these barriers may be necessary to move the stock market into a positive direction.
At the bottom, immediate support for XRP is near the lower Bollinger Band at $1.07.
A definite break below this level could accelerate the selling pressure and ensure that the indicator retests the recent support zone around $1.05.
Breast pressure should continue to increase, traders can look at the all-important level of $1.00 as the next major area of interest.
Until buyers retake major resistance levels, XRP remains vulnerable to further upside in the near term.
