Foreign media reports that XRP is hovering near the lower end of its recent trading range as Bitcoin breaks below key support and the overall crypto market comes under pressure. A commentary article cites an analyst who believes that if the situation in the Middle East continues to deteriorate, risk assets may face another round of selling, and XRP may fall further in the short term.
Geopolitical tensions put pressure on risk assets
The article argues that the biggest external variable currently stems from the situation in the Middle East. Risks of oil supply disruptions, declining inventories, and renewed conflict between Iran and Israel are all increasing market concerns about disruptions to energy transportation.
The analyst noted that even if a ceasefire or de-escalation occurs, supply chain recovery may not be swift. Disruptions to shipping in the Gulf region could further slow energy transport and amplify market risk aversion.
US stocks and US bonds issued warnings simultaneously.
Besides geopolitical risks, the article also cites the vulnerability of traditional markets as another source of pressure. Analysts say the US bond market is still in a prolonged pullback, while the US stock market rally is driven more by a few large companies, lacking broad market breadth.
Based on this assessment, the article argues that overvalued stocks face greater volatility risks. Compared to continuing to chase assets that have already risen significantly, those that have undergone substantial corrections are more likely to attract attention.
XRP may retest the $1.20 area.
Regarding XRP itself, analysts maintain a long-term bullish outlook, but anticipate a potential short-term dip. The article states that even institutional investment has failed to prevent a price decline amidst Bitcoin's continued weakness.
According to their assessment, XRP may retest support around $1.20, but the probability of it falling below $1 is not high. The article describes this phase as the final cleansing before an upward move, arguing that market lows are more likely to occur when sentiment is extremely cautious.
Additional information:This article is primarily based on the opinion of a single analyst, and the original text does not provide on-chain data, fund flows, or institutional reports as independent evidence.
