Bitcoin, Ethereum, XRP: Battle for Key Support Amid Geopolitical Risks

▲ Bitcoin (BTC), Ethereum (ETH), XRP / ChatGPT generated image ©

Bitcoin, Ethereum, and XRP are struggling to find upward momentum near key support levels. As military tensions between the US and Iran escalate again, coupled with outflows from Bitcoin spot ETFs and Ethereum spot ETFs, a cautious sentiment is deepening across the cryptocurrency market.

According to investment media outlet FXStreet on May 27 (local time), Bitcoin (BTC) traded near $76,000, continuing its short-term bearish trend. Amid an unstable truce between the US and Iran, investors are closely watching for the signing of a Memorandum of Understanding (MOU) between the two countries. Market anxiety grew after the Iranian Revolutionary Guard Corps (IRGC) mentioned possible retaliation following US strikes on Iranian military facilities, but both countries are reportedly continuing negotiations, including coordinating wording related to their nuclear programs.

Market sentiment has also sharply contracted. The Fear & Greed Index dropped from 34 the previous day to 25 today, remaining in the 'extreme fear' zone. As investors' risk aversion intensifies, buying pressure across the cryptocurrency market appears to be slowing. Notably, Bitcoin spot ETFs saw an outflow of $334 million in a single day, reducing cumulative net inflows to $56.75 billion. Total assets under management (AUM) were reported at approximately $98.4 billion. Ethereum spot ETFs also recorded an outflow of $35 million during the same period.

The technical trend is also not favorable. Bitcoin remains below the 50-day Exponential Moving Average (EMA) of $76,724, the 100-day EMA of $76,847, and the 200-day EMA of $81,220. The Relative Strength Index (RSI) is in the low 40s, and the Moving Average Convergence Divergence (MACD) histogram also remains in negative territory, indicating persistent downward pressure. The media outlet analyzed that the uptrend line near $70,574 acts as a key support level, and if this level breaks, the possibility of further correction could increase.

Ethereum (ETH) traded near $2,090, failing to break the $2,100 resistance level. The RSI has fallen to 38, and the MACD also continues its negative trend. The media outlet diagnosed that maintaining the $2,000 support level is a key short-term variable. In contrast, XRP (Ripple) maintained a relatively robust ETF fund flow. XRP spot ETFs have seen consistent inflows over the past two weeks, recording a net inflow of $1.55 million today. Cumulative net inflows totaled $1.41 billion, with total assets under management at $1.12 billion.

However, XRP's price movement remains limited. XRP traded near $1.33, staying below the 50-day EMA of $1.40, the 100-day EMA of $1.47, and the 200-day EMA of $1.68. The RSI is moving below 40, and the MACD histogram has also not exited negative territory. The media outlet predicted that the support of the $1.31 uptrend line would be a short-term turning point.

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