As the cryptocurrency market grapples with escalating geopolitical tensions in West Asia, it continues its descent from the lofty heights of Q1, when it reached a staggering $2.86 trillion. Amid this turmoil, XRP price recently endured a significant downturn, plunging to $0.43 last Sunday before experiencing a minor rebound.

However, this brief recovery faltered swiftly, failing to sustain levels above $0.5, as mounting selling pressure loomed ahead of Bitcoin's impending third halving cycle.

With XRP experiencing a staggering 21.2% decline over the past week, it now hovers at $0.4766 against the US dollar during Wednesday's US business hours. Concurrently, Bitcoin's price struggles in the red, testing support at $60,000 amidst concerns of a potential dip to $50,000.

The downward trend has not spared major altcoins like Ethereum, which have faced significant losses since their March peaks. Ether, for instance, has retreated to $2,950 at the time of writing, marking a cumulative drop of 15% over seven days.

The accompanying 26% decline in XRP's 24-hour trading volume, now at $1.66 billion, underscores waning trader interest in the cross-border token.

Currently positioned seventh with a market cap of $26 billion, XRP lags behind Lido Staked Ether, a liquid staking token tied to ETH's value.

In light of the crypto market's somber state, investors are left pondering the direction of XRP's price trajectory. At present, XRP price is testing a crucial support level at $0.47, historically serving as a pivotal point since July 2023. This level has often acted as a springboard for bullish reversals, signaling a shift in momentum and halting prolonged downtrends.

However, the reliability of this support zone diminishes with each successive test, raising concerns among traders. A breach of the $0.47 threshold could exacerbate XRP's technical vulnerabilities, inviting heightened selling pressure from short sellers eager to capitalize on market weakness. In such scenarios, some investors may opt to cut losses preemptively, amplifying downward momentum.

The bearish outlook is further accentuated by the Relative Strength Index (RSI), which descends into oversold territory, suggesting an intensified bearish sentiment. Overcoming this bearish momentum for a sustained recovery may require significant effort on XRP's part.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator paints a bleak picture for XRP's immediate future, as it dips into negative territory below the mean line (0.00), signaling ongoing losses and a distant recovery prospect.

While the impending Bitcoin halving offers a glimmer of hope for the crypto market's resurgence in April, its impact may be tempered by geopolitical tensions in West Asia, notably between Israel and Iran.

Additionally, the outcome of the ongoing Ripple Vs SEC lawsuit looms large, potentially shaping XRP's long-term trajectory. Ripple faces a daunting $2 billion fine demand from the SEC for allegedly selling unregistered securities to institutional investors.

Though a court ruling in July 2023 deemed XRP sales on exchanges non-security offerings, Ripple still faces scrutiny over direct institutional sales. A favorable outcome for Ripple could bolster XRP's market position, rendering it an appealing investment asset. However, admission of direct security sales may expose Ripple to further legal battles, potentially dampening XRP's price amidst prolonged legal wrangling.