The global cryptocurrency market is painted red as geopolitical tensions escalate, following the U.S. intervention in the conflict between Israel and Iran. As of the time of writing, Bitcoin (BTC) has slipped below the $105,000 mark. Meanwhile, meme coins like SPX6900 (SPX), Dogwifhat (WIF), along with Virtuals Protocol (VIRTUAL) are leading the decline, triggering a widespread correction across the market.
The U.S. is considering missile strikes on Iran
With a clear stance leaning towards Israel, U.S. President Donald Trump has declared he will force Iran to 'unconditionally surrender.' In a message posted on platform X on Tuesday, Trump affirmed that Washington has accurately identified the hideout of Iran's 'Supreme Leader,' but has not yet taken action.
Despite temporarily standing outside the conflict, the U.S. is still demonstrating superior military strength to pressure Iran into retreating, ending the conflict that has lasted for 5 days. Notably, Trump revealed that the U.S. Air Force has completely controlled Iranian airspace – a move that demonstrates overwhelming superiority in the skies.
In the context of escalating tensions, the Wall Street Journal reports that President Trump is considering a range of response options, including the possibility of launching missile strikes on Iran. The prospect of the U.S. entering a war with Iran is causing turmoil in global financial markets and the cryptocurrency market, while crude oil prices continue to surge sharply.
SPX6900 is at a crucial turning point
After a sharp drop of nearly 12% on Tuesday, SPX6900 has made a remarkable comeback, recording an increase of more than 4% and trading in the green at the time of writing on Wednesday. Currently, this meme coin is holding its position above the 78.6% Fibonacci level at $1.28 — determined from the highest closing price in January ($1.55) to the lowest low of the year ($0.29).
However, selling pressure has not eased. If SPX6900 slips from this key support area and closes below $1.28, the downward trend could continue, bringing the price back to the 50% Fibonacci retracement level at $0.92. Notably, the 50-day exponential moving average (EMA) near the psychological level of $1 could act as a temporary cushion, supporting a short-term price recovery.
The steep drop on Tuesday also triggered a bearish cross signal on the MACD indicator, as the MACD line cut below the signal line. The appearance of red histograms below the 0 line further reinforces the notion that the correction trend is still present.
However, if SPX6900 maintains its recovery momentum and stays above the $1.28 level, the bullish outlook remains wide open, aiming for the all-time closing high at $1.55.
VIRTUAL approaches the key support area
As of the time of writing on Wednesday, VIRTUAL has decreased by nearly 1%, raising the total decline for the week to over 8%. This AI platform's token just recorded a significant drop of 6.8% in the previous trading session and closed below the 50-day exponential moving average (EMA) – a factor that is placing significant pressure on the key support area at $1.64, which was the low established on May 17.
If the price breaks below the support level of $1.64, the downward momentum may continue, with the next target at the support level of $1.39 – the closing level of May 7. In this scenario, the 100-day EMA around $1.57 could serve as an important medium-term support cushion.
The MACD indicator continues to cut below the 0 level and below the signal line, further reinforcing the negative signal as it shows that the downward momentum is significantly increasing.
Conversely, if VIRTUAL rebounds from the $1.64 level and breaks through the weekly peak at $2.01, the bearish outlook could be invalidated, opening up opportunities for a new recovery cycle.
WIF faces the risk of a deeper decline
Dogwifhat (WIF) – a famous meme coin on the Solana ecosystem – has just recorded a decline of more than 7% during the strong market correction on Tuesday, falling to the lowest point in the past 30 days. Notably, WIF has also breached the key support level at $0.798 – a price level that had held firm multiple times in recent weeks.
Increasing selling pressure is pushing WIF into a danger zone, with the possibility of continuing to plunge to the next support level at $0.550 – a price level that was last tested on May 6.
Technical signals are clearly warning: the MACD indicator is sliding down and has fallen into the negative zone, while the signal line indicates that a new downward trend is forming distinctly.
However, the market still holds hope. If WIF can regain the lost support area at $0.798, the recovery momentum could be activated, opening up opportunities to return to the important psychological level at $1.