The cryptocurrency market experienced a sharp decline, with the total market cap falling 3.3% to $2.53 trillion as Bitcoin dropped below $73,000 for the first time in weeks. Ethereum lost the $2,000 support level, while XRP slipped under $1.30 and Solana fell back near $80. This broad-based selloff represents one of the most significant market-wide declines in recent weeks, with the Crypto Fear and Greed Index dropping into fear territory as traders brace for further pain rather than seeking bargains. The selling reached across all market segments, from major coins to meme coins, as investors dumped cryptocurrencies in a hurry following the latest geopolitical developments.
The market decline was triggered by fresh U.S. airstrikes on Iran near the Strait of Hormuz, which reversed ceasefire hopes and sent investors running from risk assets. This marks the second set of strikes in a matter of days, with Iran already promising retaliation. Markets had been betting on calm, with a 60-day ceasefire in the works, and prices had settled on the assumption that the worst was over. The Strait of Hormuz represents one of the most important oil routes on the planet, and any threat to it pushes crude prices higher. Crude has already climbed back above $107 a barrel on the tension, with higher oil prices feeding inflation and making the Federal Reserve less likely to cut interest rates, which keeps pressure on every risky bet from tech stocks to Bitcoin.
From a technical perspective, XRP has broken down from a triangle/pennant formation and lost the $1.35 pivot level. The cryptocurrency is now falling from the $1.30–$1.32 demand zone that previously launched strong upside movements. The 50-day moving average is declining, and the price is printing lower lows in a classic bearish market structure. Hourly MACD is gaining pace in the bearish zone, while hourly RSI is now below the 50 level. The price is currently consolidating losses well below the 23.6% Fib retracement level of the downward move from the $1.3638 swing high to the $1.2677 low. Initial support is near the $1.2675 level, with next major support at $1.2550. If there's a downside break and close below $1.2550, the price might continue declining toward $1.2320, with next major support at $1.220. The altcoin also trades below the downward-sloping parallel channel cap near $1.38 and holds below the 50-, 100-, and 200-day Exponential Moving Averages clustered from roughly $1.39 to $1.66.
The breach of the $1.30 support level has significantly impacted market confidence, with the May XRP targets showing a 0.5% YES rating, down from 2% 24 hours ago and 9% a week ago. This represents a notable shift in market sentiment, as participants now appear to be expecting further downward movement rather than a recovery to higher price points. The heavy volume during the price drop appears to reinforce this negative outlook, with market participants seemingly expecting XRP to struggle to reach the $1.60 mark this month. Derivatives data shows mixed sentiment with a slight bearish tilt, as CoinGlass' long-to-short ratio for both XRP and XLM reads 0.84 and 0.98 respectively, indicating that traders are betting the assets' prices will fall. First major resistance is near the $1.30 level, with main resistance at $1.3150 or the 50% Fib retracement level. A close above $1.3150 could send the price to $1.3275, with next hurdle at $1.340 and bearish trend line forming with resistance at $1.340 on the hourly chart.
Finance expert Levi Rietveld has gained attention for posting on X that "I TOLD YOU XRP FAM!!!! ITS HAPPENING!!!! THE SEC IS DOING IT!" while referencing a video arguing that the Federal Reserve is preparing to inject an initial $7 billion into the economy next week as the opening move of a quantitative easing cycle. Rietveld contends that coordinated liquidity expansion across the U.S., China, and Europe would dramatically expand global M2 money supply, pushing capital into risk assets including crypto. Whether or not the Fed delivers on this policy, XRP's price structure has deteriorated meaningfully over the past 48 hours, with the latest geopolitical developments adding additional pressure to an already fragile market structure.
