XRP, first collapse below $1.3 since April...whales exiting and support lines 'crumbling'

▲ XRP/ChatGPT generated image

XRP has given up a key price level, falling below $1.30 for the first time since early April. This, coupled with a reduction in holdings by whale wallets, has made the short-term bearish structure even more pronounced.

According to cryptocurrency specialized media FXStreet on May 28 (local time), XRP fell below $1.30 amid a spread of risk-off sentiment across the cryptocurrency market due to escalating tensions between the US and Iran. FXStreet reported that news of the US targeting Iranian drones and launch facilities around the Strait of Hormuz, and Iran attacking US bases, weakened hopes for a peace agreement and burdened investor sentiment.

US President Trump stated on May 27 that he would not rush an agreement with Iran. Although Iranian state television reported progress in finalizing a memorandum of understanding with the US and plans to restore commercial shipping traffic in the Strait of Hormuz, FXStreet explained that Trump's remarks were interpreted as a sign that an agreement was not imminent.

Market sentiment also quickly froze. Alternative's Crypto Fear & Greed Index dropped from 25 the previous day to 22 today, remaining in the extreme fear zone. FXStreet reported that if the weakening investor sentiment continues, it will be difficult to sustain a price rebound, and the possibility of continuous selling pressure may increase.

On-chain indicators confirmed a reduction in risk exposure by large holders. According to Santiment's supply distribution metric, the proportion of wallets holding between 100 million XRP and 1 billion XRP fell from 11.92% on May 20 to 11.51% on May 28. FXStreet analyzed that if this trend continues, supply pressure could continue to weigh on demand, increasing the likelihood of a stronger bearish trend.

The technical structure also leaned bearish. XRP traded around $1.29, remaining below the broken uptrend line, and the previous support level turned into resistance around $1.31. The 50-day exponential moving average was around $1.39, the 100-day exponential moving average around $1.46, and the 200-day exponential moving average around $1.67, presenting as upper resistance limiting a rebound. The Supertrend indicator was placed around $1.43, and the Relative Strength Index showed weak momentum above 33 on a daily basis. FXStreet reported that if selling pressure continues, XRP could find support at $1.25, and bearish pressure could persist until short-term resistance levels are clearly recovered.

*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.*