The XRP cryptocurrency has struggled to gain upward momentum after recent attempts to push past $1.42.

Price action shows XRP moving sideways, forming a tight pattern that is technically recognised as a bear pennant.

This setup suggests that the coin is gathering energy for a potential move, with the bias currently favouring a downside continuation.

Short-term indicators, including MACD and RSI, reflect weakening momentum.

The coin is also trading below its 50-day and 200-day moving averages, signalling that the broader trend remains bearish.

In addition, the bear pennant pattern signals a possible breakdown, especially after XRP failed to breach the $1.42 resistance zone.

A breakdown from a bear pennant is often viewed as a continuation of the preceding move, which in this case points downward.

In case of a breakdown, the support around $1.34 and $1.30 appears to be crucial for XRP in the near term.

Below these levels, the coin could test deeper areas near $1.22, where previous demand has offered temporary relief.

On the upside, the immediate resistance is between $1.40 and $1.42, where upside momentum has been capped.

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Beyond technical patterns, broader market forces are shaping investor behaviour.

Heightened geopolitical tension in the Middle East, particularly the ongoing conflict involving the United States, Israel, and Iran, has created uncertainty across risk assets.

Such uncertainty tends to reduce appetite for volatile instruments, including cryptocurrencies like XRP, as traders seek safer positions.

Recent inflows of XRP onto exchanges hint that holders may be preparing to sell if the market weakens further.

Combined with already-present technical weakness, this has reinforced the narrative of a cautious, range-bound market.

Despite occasional attempts to rebound, XRP has not convincingly reclaimed key short-term averages, leaving the coin vulnerable to further downside.

The bear pennant suggests that a decisive move may be imminent, but both technical signals and external market shocks will heavily influence the direction.

Volatility is expected to remain elevated as the geopolitical tensions in the Middle East persist.

On the downside, a breach of $1.34 could accelerate losses toward $1.30 and possibly $1.22.

Longer-term technical setups indicate that a full breakdown could push XRP as low as $0.86 in a worst-case scenario if market conditions worsen.

For bullish hopes to get revived, the altcoin must break above $1.42.

If bulls manage to push above $1.42, the next target could be around $1.44 to $1.50, though these levels remain under scrutiny.

The post XRP coiling inside a bear pennant as Iran conflict escalates appeared first on Invezz

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