XRP price is trading at $1.05 on Wednesday as the selling pressure is prevailing in the crypto market. Weak sentiment and macro risks weighed on demand while traders monitored the $1.00 support level.
The cryptocurrency held its ground near a point last seen in November 2024. A move below the $1.00 support would add further trouble to the altcoins’ situation.
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XRP Price Slips as Macro and Geopolitical Risks Rise
XRP prices fell amid growing worries about monetary policy. Recently, the Fed chairman, Kevin Warsh, said that the central bank was still pursuing its 2% inflation goal.
Besides, he mentioned price stability as one of the mandates of the Fed. That comment increased the possibility of higher interest rates amid relative calm in the first quarter.
Cryptocurrencies can be affected by higher interest rates. They are responsible for frequently pushing investors into leaner risk appetites and safer alternatives such as bonds and cash.
Geopolitical risk also weighed on crypto markets. The U.S. and Iran continued to disagree on the results of the recent nuclear negotiations.
President Donald Trump has declared Iran agreed to accept strict inspections. Iranian officials rejected that claim and stated that nuclear issues were not discussed in detail during the most recent talks.
This uncertainty maintains the weak risk appetite among digital assets. In the case of crypto, it indicates less buying, weaker rebounds, and increased pressure on tokens that are close to their support levels.
Market sentiment also remained under stress. The Fear & Greed Index stands at 17 on Wednesday, compared with the previous day’s level of 23.
The reading was in Extreme Fear territory. It indicated that traders are still defensive, which may curb any short-term recovery in XRP price.
XRP Falling Wedge Structure Holds Above Macro Support
Analysts continued to track the weekly chart. Crypto analyst Egrag Crypto highlighted that XRP is still trading inside a falling wedge pattern.
He added that the formation is still active. The analyst noted that there is evident price compression within the structure.
He also mentioned the 50 EMA and 222-week moving average. The potential crossover of both indicators is crucial.
According to the analyst, the same pattern in the past cycle helped signal that the cycle bottom for XRP was already over.
A $1.65 represents the crucial level of breakout. A close above this level will confirm a breakout from the falling wedge pattern.
The move will allow shifting XRP into an expanding phase again. Until that moment, the falling wedge pattern remained active.
Moreover, the analyst stressed that XRP should first manage to hold its macro support level. Then XRP needs to retake $1.65. In that case, Egrag suggested the next major target path could point toward $8 to $10.
Traders now watch $1.00 support and the $1.65 breakout level. Until a clear breakout or breakdown occurs, the XRP price may remain under pressure with weak market confidence.
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