to leave a comment.

▲ US, Iran, Bitcoin (BTC), XRP/ChatGPT Generated Image ©
As major altcoins, which had been maintaining a strong trend, turned to a decline after being directly hit by macro headwinds that shook the entire virtual asset market, global investors' attention is focused on whether support lines will be defended in the future and the possibility of a technical rebound. This sharp decline is interpreted as a reflection of the market-wide risk-off sentiment, driven by the retreat of market leaders and geopolitical risks from the Middle East, rather than intrinsic negative factors of the assets themselves.
According to CoinMarketCap, a cryptocurrency market data aggregator, on May 23 (local time), XRP (Ripple) fell by 3.06% over the past 24 hours, dropping to $1.32, aligning with the overall decline in the virtual asset market. According to experts' analysis, this decline is primarily due to geopolitical uncertainty triggered by news that the US is considering military strikes against Iran, and the contraction of the Bitcoin (BTC) spot ETF market, which recorded over $100 million in outflows on May 22 alone. XRP, despite having no intrinsic negative news, synchronized with BTC's 3.4% drop, fully demonstrating its high beta (sensitivity) characteristic to the market leader.
The initial downward pressure triggered by the macro shock led to a large-scale liquidation event in the derivatives market across virtual assets, widening the decline. Over $575 million in long positions were forcibly liquidated in the overall virtual asset market over the past 24 hours, intensifying a chain reaction of selling pressure. Furthermore, a defensive shift of capital from altcoins to BTC accelerated, causing the Altcoin Season Index to plummet by 12.2% to 36, demonstrating asset allocators' extreme risk-off sentiment.
In terms of technical indicators, XRP is urgently testing the critical support zone between $1.31 and $1.33, which coincides with its recent previous low. Fortunately, the 7-day Relative Strength Index (RSI), indicating a short-term oversold condition, has fallen to 28.34, increasing the probability of a technical relief rally. If buying pressure activates in the future and successfully defends the current support level, a scenario of recovery to the $1.38 resistance level, which is the 78.6% Fibonacci retracement level, is presented as the primary outlook.
However, if tensions in the Middle East persist and the daily closing price ultimately breaks below the $1.31 support level, there is a persistent risk that a large volume of investors' stop-loss orders will be triggered, intensifying downward pressure towards the next support level around $1.28. Experts, including virtual asset media, assess that although positive on-chain development achievements, such as capital inflows into XRP spot ETFs, have been overshadowed by macroeconomic fear, the market has entered a bottoming-out process as overheated leverage has been digested. Over the next 24 hours, the defense of short-term support levels and BTC's stabilization above the $74,000 mark are expected to be critical turning points for the short-term direction.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.