Ripple (XRP) recorded a decline in the 4% range as geopolitical tensions between the United States and Iran reignited. A massive long position liquidation occurred in the futures market, and institutional investors' buying momentum has noticeably stalled.

Risk Assets Weaken Across the Board as U.S.-Iran Ceasefire Ends... $8.61 Million Liquidated

According to overseas crypto media outlet CoinGape, as of July 8 (local time), XRP was trading at $1.07, down 4.32% from the previous day. The decline is primarily attributed to investors offloading risk assets after U.S. President Donald Trump declared an end to the ceasefire between the United States and Iran.

The futures market, hit hard by this downturn, saw approximately $8.61 million in long position liquidations. This figure, reported by CoinGape citing CoinGlass data, marks the largest scale since June 25.

At the NATO summit held in Ankara, President Trump criticized the Iranian leadership and negotiating team for not telling the truth to the media regarding the negotiation process with Iran. He strongly condemned them, stating, "In my opinion, it's over. I don't want to deal with them anymore. They are terrible people. They are led by sick people."

According to CoinGape, these remarks came shortly after the United States struck 80 targets inside Iran on July 7 (local time) in response to Iran attacking a commercial vessel in the Strait of Hormuz. President Trump also reimposed oil sanctions on Iran. These sanctions had been lifted when the two nations agreed to a 60-day ceasefire on June 17 (local time), and the ceasefire was originally scheduled to end on August 16.

Due to this situation, international oil prices rose to $74 per barrel, a high not seen since June 24. However, in the cryptocurrency market, selling pressure expanded amid concerns over geopolitical tensions, leading to a decline in XRP's price.

Technical Indicators Also Favor Sellers... Possibility of Further Decline Raised

According to CoinGape, XRP is currently trading below the 20-day Exponential Moving Average (EMA) of $1.11, which is interpreted as a signal that the short-term trend favors sellers. The AO indicator bars turning red also suggests that selling pressure is dominant.

The media outlet reported that if the sell-off driven by geopolitical tensions continues, XRP could fall to its June 30 low of $1.03. If the price falls below that level, there is a possibility it could drop further to the psychological support line of $1.

On the other hand, if this decline, like on July 1, actually attracts buying pressure and XRP closes above the 20-day EMA at $1.11, it could signal that sellers are losing strength. Furthermore, CoinGape added that if it closes above the 20-day EMA for three consecutive trading days, it could target the July 4 high of $1.18 again.

Institutional Demand Remains Minimal Despite Acquiring MiCA-Compliant License

CoinGape previously reported that Ripple obtained a license in Luxembourg on July 5 (local time), enabling it to comply with the European crypto-asset regulation, MiCA. However, despite this positive regulatory development, demand from institutional investors has not revived.

The spot XRP ETF recorded zero net inflows for two consecutive days on July 6 and 7 (local time), during which the price also fell concurrently. Additionally, according to information reported by CoinGape citing CME data, the number of XRP futures trading contracts on July 7 was only 635, marking the lowest trading volume since June 12.

The media outlet analyzed that the sluggish spot ETF inflows and the decline in CME futures trading serve as evidence that institutional investors are taking a cautious stance on buying XRP amid escalating tensions between the United States and Iran.

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