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▲ Bitcoin (BTC), cryptocurrency decline/AI generated image
As tensions between the United States and Iran escalated again, risk-off sentiment swept the cryptocurrency market, with Bitcoin (BTC), Ethereum (ETH), and XRP simultaneously threatening key support levels.
According to cryptocurrency specialized media FXStreet on May 28 (local time), cryptocurrency prices continued a general sell-off amid rising tensions between the US and Iran. Bitcoin fell for three consecutive trading days, dropping to around $73,353, while Ethereum faced pressure below $2,200 and XRP below $1.30.
FXStreet reported that the armed conflict between the US and Iran weakened investor sentiment. Iran described the US attack as a violation of a fragile truce and international law, stating it targeted US bases. Previously, Iranian state media reported that an unofficial framework of a memorandum of understanding with the US had been finalized, and the US would withdraw troops near Iran and lift the naval blockade. However, US President Donald Trump stated that he would not rush into a peace agreement with Iran, signaling that an agreement was not imminent.
The deterioration of investor sentiment was also evident in the Fear & Greed Index. Alternative's Crypto Fear & Greed Index dropped from 25 the previous day to 22 today, remaining in the extreme fear zone. FXStreet reported that if investor sentiment continues to be weak, it will be difficult to sustain price increases, and the possibility of a continuous sell-off could increase.
Bitcoin remained in a short-term bearish trend, trading below its 50-day, 100-day, and 200-day exponential moving averages. The 50-day EMA was clustered around $76,535, the 100-day EMA around $76,748, and the 200-day EMA at $81,350 served as overhead resistance. The Relative Strength Index remained around 35 on the daily chart, and the MACD histogram showed continued downward pressure below the signal line and the zero line. On the downside, the trendline break zone near $70,671 was presented as the first key support level.
Ethereum fell to around $1,990, trading below its 50-day, 100-day, and 200-day exponential moving averages. The 50-day EMA at $2,200, the SuperTrend indicator at $2,222, the 100-day EMA at $2,282, and the 200-day EMA at $2,521 successively formed resistance zones. The Relative Strength Index lingered around 30, close to the oversold territory, but the MACD histogram remained in negative territory, indicating sustained selling pressure.
XRP increased bearish pressure by trading below the $1.31 trendline break zone and all major moving averages. The 50-day EMA was at $1.39, SuperTrend at $1.43, the 100-day EMA at $1.46, and the 200-day EMA at $1.67 was presented as a larger structural resistance. FXStreet reported that if the sell-off continues, XRP could find support at $1.25, and further declines could lead to a confirmation of a broader bearish trend.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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