XRP News Today: XRP Drops 41% as Geopolitical Tensions Escalate

XRP, the native token of the Ripple network, has experienced a significant sell-off, with its price dropping below the $2 mark. This downturn is largely attributed to escalating geopolitical tensions, particularly the involvement of the United States in the conflict between Iran and Israel. The token's 24-hour trading volumes surged by 41%, indicating a substantial number of long positions being liquidated due to the bearish breakout.

Despite recent legal victories against the U.S. Securities and Exchange Commission (SEC) and the appointment of a pro-crypto figure, Paul Atkins, as the new leadership within the regulatory agency, the market has largely overlooked these bullish catalysts. Additionally, the launch of Ripple USD (RLUSD) and the expansion of its market cap, along with the announcement of USDC support within the Ripple blockchain, have not been enough to bolster XRP's prospects in 2025.

XRP's price has been consolidating for some time after surging near its all-time highs in January. The recent drop to $1.91 and subsequent bounce suggest a potential retest of the former support level at $2.08. If the price fails to move above this resistance, it could signal a significant downturn in the short term, confirming a bearish outlook. The long-term price trend has also shifted to bearish, as XRP is now trading below its 200-day exponential moving average (EMA).

Trading volumes at $1.91 were notably high, indicating significant buying interest at that level. This, along with the $2.08 resistance, are key areas to monitor in the coming hours. Any further escalation in the Middle East conflict could lead to a more pronounced decline in XRP's price, as the U.S. dollar is likely to strengthen during such geopolitical unrest. Meanwhile, Bitcoin (BTC) has shown resilience to this downturn, being seen as a safe haven during times of geopolitical distress.

According to the analyst's forecast, the retest of the $1.9 support level seems highly likely. The recent surge in crypto liquidations, totaling over $620 million, has been driven by the latest developments in the Middle East. This has led to a shift in the long-term price trend for XRP, which is now trading below its 200-day EMA. The high trading volumes at $1.91 confirm the relevance of this price zone and the presence of significant buying interest. Any further escalation in the conflict could lead to a more pronounced decline in XRP's price, as the U.S. dollar is likely to strengthen during such geopolitical unrest.