XRP is trading near the lower end of its recent range as broader crypto markets remain under pressure. Bitcoin has slipped below support levels, while geopolitical tensions and macroeconomic uncertainty continue weighing on investor sentiment. Despite the weakness, one analyst argues that the long-term case for XRP remains intact and says the current pullback could create one of the best buying opportunities before the next major rally.
Middle East Tensions Could Trigger Another Market Drop
According to the analyst, the biggest risk right now comes from escalating tensions in the Middle East.
He pointed to warnings from major oil producers that crude prices could surge dramatically if supply disruptions worsen. Recent reports of declining oil inventories, Japan’s strategic petroleum reserve drawdowns, and renewed conflict between Iran and Israel have added to those concerns.
The analyst stressed that even if a peace agreement comes, supply chains may take months to normalize. He also analysed the shipping disruptions in the Gulf region, where idle vessels are reportedly facing operational issues that could further slow energy transportation.
In his view, the market has not yet seen the peak of this geopolitical crisis, increasing the chances of another wave of selling across risk assets.
Stocks and Bonds Are Flashing Warning Signs
The analyst also argued that traditional markets are becoming increasingly vulnerable.
He noted that the U.S. bond market has remained in a prolonged drawdown, while stock market gains are being driven by only a small number of companies. Despite the S&P 500 reaching fresh highs, he warned that market breadth remains weak and valuations are among the highest on record.
Rather than chasing overheated stocks, he says investors should focus on assets that have already gone through major corrections.
XRP Could See One More Pullback
While remaining bullish on XRP long term outlook, the analyst expects another short-term decline if geopolitical tensions continue to worsen.
He pointed to Bitcoin’s recent weakness and noted that even large institutional buyers have not been able to prevent price declines. The analyst says XRP could revisit the $1.20 area before finding stronger support.
However, he does not expect XRP to collapse below $1. Instead, he sees the current setup as similar to previous market cycles, where one final shakeout occurred before a major rally began.
Long-Term Bullish Outlook Remains
Despite the warning, the analyst says the fundamentals behind XRP and other utility-focused digital assets remain stronger than ever.
He expects the next bull run to arrive later in 2026 and plans to continue accumulating XRP on weakness. In his view, periods of fear and heavy selling often create the best opportunities, and investors who stay patient during pullbacks could be rewarded when market sentiment eventually turns positive again.
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