 ▲ XRP Decline / ChatGPT-Generated Image |
Geopolitical risks between the United States and Iran have cast a shadow over the cryptocurrency market, prompting warnings that XRP could plunge to the $1 level.
CoinGape reported on March 7 (local time), citing analysis from crypto analyst Chart Nerd, that XRP is likely to drop to $1 in a liquidity grab before attempting a technical rebound. In a post on X (formerly Twitter), Chart Nerd pointed out that the current liquidity heatmap shows a massive liquidity zone formed between $1 and $1.20. “Before breaking through resistance around $1.80, the most probable scenario for March is that XRP sweeps the lower liquidity between $1 and $1.20 first,” he analyzed.
$XRP Liquidity Heatmap 🔥Move Brewing?SS Liquidity Stack = $1/$1.20 ✅️BS Liquidity Stack = $1.80 ✅️What wouldnt be suprising? 🤔A liquidity grab back to the lower $1.20/$1 SS range before sweeping the strong BS liquidity around $1.80..
If so, March will be on track 👍🏻 pic.twitter.com/HFVsXuqTKB
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) March 7, 2026
The core driver behind the recent downward pressure is the surge in oil prices to multi-year highs amid the possibility of war between the United States and Iran. Rising oil prices fuel inflation concerns and could prompt the Federal Reserve to maintain higher interest rates for longer, a significant headwind for risk assets including Bitcoin (BTC). As Bitcoin fell below $70,000, XRP also broke below the $1.40 level, extending its decline.
Institutional investor sentiment has also turned sharply negative. According to SoSoValue data, XRP spot ETFs recorded approximately $4 million in net outflows over the past week, marking the first weekly net outflow in about a month since January 30. Notably, $16.62 million flowed out in a single day on the 6th, the largest daily outflow since January 29. Spot Bitcoin ETFs and Ethereum (ETH) spot ETFs also saw outflows of $349 million and $83 million, respectively, indicating a clear withdrawal of institutional capital.
Despite the downturn, positive on-chain indicators are emerging, raising hopes for a rebound. The 30-day moving average (30-DMA) metric tracking whale activity has turned positive for the first time in three months. This suggests that large investors may be using the current dip as a buying opportunity. If buying pressure from major players increases enough to offset selling pressure, a strong rebound could begin near the $1 level, as Chart Nerd predicted.
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