 ▲ XRP Decline/ChatGPT-Generated Image © |
XRP (XRP, Ripple) fell to $1.35 amid growing concerns over a prolonged U.S.-Iran war, exposing the token to further downside pressure.
According to investment media outlet FXStreet on March 3 (local time), XRP traded around $1.35 during the session, marking a correction of more than 2%. This move erased most of the gains from the previous day’s rebound to $1.42. As the conflict between the United States and Iran spreads across the Middle East, risk-off sentiment has intensified across global markets, with the cryptocurrency market also remaining stuck in a state of “extreme fear.”
Derivatives market indicators point to a dominance of bearish bets. The futures open interest-weighted funding rate fell to -0.0118%, suggesting that a majority of leveraged traders are positioning for further declines. In such a structure, even if a short-term rebound occurs, prices are often pressured by new short positions or long liquidations. However, analysts note that if the funding rate remains deeply negative for an extended period, a short squeeze—buying triggered by the liquidation or covering of short positions—could occur, potentially leading to a sharp short-term rally or the formation of a local bottom.
Institutional demand remains relatively solid. On Monday alone, U.S.-listed spot XRP ETFs recorded approximately $7 million in net inflows, with Bitwise attracting $4.69 million and Canary Capital $2.28 million. Cumulative net inflows have reached $1.25 billion, while total net assets stand at around $1.02 billion. The fact that ETF funds have not seen significant outflows despite heightened geopolitical tensions is considered a factor providing some downside support.
Technically, a bearish structure prevails. XRP is positioned below a descending trendline resistance, while the 50-day, 100-day, and 200-day exponential moving averages are clustered between $1.58 and $2.03, forming a strong overhead supply zone. The Supertrend indicator also continues to signal a downward direction near $1.61. The daily Moving Average Convergence Divergence (MACD) is approaching the signal line, but the shrinking green histogram suggests weakening momentum.
Short-term resistance lies at the $1.40 trendline and the previous high of $1.42. A daily close above $1.42 could open the door to the 50-day moving average at $1.58 as the next upside target. Conversely, if the $1.33 support level breaks, losses could extend to the February support zone at $1.12. Unless war-related risks subside, XRP is likely to continue experiencing volatility between technical rebounds and geopolitical uncertainties.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from its use. The content should be interpreted for informational purposes only.