 ▲ Donald Trump, XRP / ChatGPT-generated image © |
As geopolitical tensions escalate in the Middle East, risk-off sentiment has spread across the cryptocurrency market, sending XRP (Ripple) into a steep decline as it breaks below key support levels. The overlap with a large-scale token unlock schedule has further fueled investor fears of additional downside.
According to CoinMarketCap on February 28 (local time), XRP plunged 6.37% over the past 24 hours to $1.30. This exceeds Bitcoin’s (BTC) 3.34% drop and the overall cryptocurrency market capitalization decline of 3.47%, suggesting that XRP is absorbing greater downward pressure than the broader market.
The primary catalyst behind the sharp sell-off is news of a U.S. military strike targeting Iran. As the geopolitical crisis intensified, investors engaged in immediate panic selling, leading to tightening macro liquidity and a flight from risk assets. CoinMarketCap’s Fear and Greed Index currently stands at 14, indicating “Extreme Fear” and underscoring the market’s deeply pessimistic sentiment.
Technical indicators are also signaling a clear breakdown. XRP has fallen below both its 7-day and 30-day moving averages at $1.39 and $1.46, respectively, and has even breached the 78.6% Fibonacci retracement level at $1.30. The 14-day Relative Strength Index (RSI) has weakened to 38.66, reflecting declining momentum. Notably, 24-hour trading volume surged 28.68% to $3.99 billion, confirming heavy selling pressure accompanied by substantial capital outflows.
Another overhang weighing on the market is Ripple’s scheduled unlock of 1 billion XRP from escrow on March 1, 2026. Although a significant portion of the released tokens has historically been re-escrowed, the event still creates short-term supply pressure and dampens investor sentiment. With no clear bullish catalysts in sight, mounting macro headwinds and technical breakdowns are leading to an accumulation of sell orders.
XRP’s near-term trajectory hinges on whether it can defend the $1.30 level. If it holds above $1.30 on a daily closing basis, a relief rally toward $1.43 could be attempted. However, if this support decisively collapses, there is a significant risk of further decline toward the recent short-term low of $1.13. Whether Bitcoin can stabilize above $64,000 is also considered a key variable.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from decisions based on this content. The information should be interpreted for informational purposes only.