Foreign media reports indicate that XRP has fallen to around $1.20, returning to levels seen around February of this year. The report suggests that this decline is not an isolated event for a single cryptocurrency, but rather part of a broader weakening of the crypto market. Bitcoin briefly dipped to around $65,000, and with risk asset sentiment cooling accordingly, XRP also came under pressure.
Geopolitical conflicts drag down risk appetite
The article attributes the market decline primarily to the renewed escalation of tensions between the US and Iran. The report states that the failure of peace talks and signs of renewed military operations in the Middle East quickly dampened investor risk appetite. Cryptocurrencies, being highly volatile, are typically among the first to be pressured by such unexpected events.
Against this backdrop, XRP's short-term decline widened. CoinGecko data shows that XRP fell 5.7% in the past 24 hours and has fallen 14.3% cumulatively over the past month. This means that its price has given back a significant portion of its previous gains.
Inflation data exacerbates market pressures.
Besides geopolitical factors, the article also mentioned that the higher-than-expected US inflation data in May further dampened market sentiment. Rising inflation means expectations of a Federal Reserve rate cut are cooling, and a higher interest rate environment is generally unfavorable for crypto assets.
The report argues that if geopolitical conflicts continue to drive up energy and economic costs, inflationary pressures could intensify further. This would push back market expectations for further easing policies, increasing valuation pressures on risk assets.
The $1 mark becomes a key point of observation
The article notes that the current price level is at a low point for XRP since its surge in November 2024. At that time, the market was betting on the progress of the lawsuit between the U.S. Securities and Exchange Commission and Ripple, which drove XRP significantly higher.
Regarding future price movements, the article suggests that $1 is a key psychological level to watch. If this level is breached, XRP could fall further to the $0.50 area; if it stabilizes around $1.20, the price may enter a period of consolidation.
However, this assessment is primarily based on projections made by foreign media outlets regarding the current market environment. In the short term, XRP's price movement will continue to be influenced by Bitcoin's performance, geopolitical developments, and changes in US inflation and interest rate expectations.
