The cryptocurrency market is on fire before the risk of America attacking Iran: SPX6900, VIRTUAL, and WIF plummet sharply.

The global cryptocurrency market has turned red as geopolitical tensions escalate, following America's intervention in the conflict between Israel and Iran. As of the time of writing, Bitcoin (BTC) has fallen below the $105,000 mark. Meanwhile, meme coins such as SPX6900 (SPX), Dogwifhat (WIF) along with Virtuals Protocol (VIRTUAL) are leading the decline, resulting in a widespread correction across the market.

America considers missile strikes on Iran

With a clear stance leaning towards Israel, U.S. President Donald Trump has declared that 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.

Although temporarily standing outside the conflict, America still demonstrates its superior military power to pressure Iran to step back and end the war that has lasted for 5 days. Notably, Mr. Trump revealed that the U.S. Air Force has completely controlled Iranian airspace – a move showing overwhelming dominance in the sky.

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 against Iran. The prospect of America entering into a conflict with Iran is causing turmoil in global financial markets and the cryptocurrency market, while crude oil prices continue to rise sharply.

SPX6900 stands at an important crossroads

After a sharp plunge of nearly 12% on Tuesday, SPX6900 has impressively bounced back, recording an increase of over 4% and trading in the green at the time of writing on Wednesday. Currently, this meme coin is holding steady above the Fibonacci 78.6% level at $1.28 — determined from the highest closing level in January ($1,55) to the lowest bottom since the beginning of the year ($0,29).

SPX6900/USDT daily chart | Source: TradingViewHowever, selling pressure has not eased. If SPX6900 slides below this key support area and closes under $1.28, the downtrend may continue, pushing the price back to the 50% Fib retracement level at $0.92. Notably, the 50-day EMA( near the psychological level of $1 could act as a temporary buffer, supporting a short-term price recovery.

The deep drop on Tuesday also triggered a bearish cross ) on the MACD indicator, as the MACD line crossed below the signal line. The appearance of red histograms below the 0 line further reinforces the notion that the corrective trend is still present.

However, if SPX6900 maintains its recovery momentum and holds above the $1.28 level, the bullish outlook remains open, with the target aimed at the all-time high closing level of $1.55.

VIRTUAL approaches the key support area

As of the time of writing on Wednesday, VIRTUAL has fallen nearly 1%, bringing the total drop for the week to over 8%. This token representing an AI platform recently recorded a sharp decline of 6.8% in the previous trading session and closed the daily candle below the 50-day exponential moving average (EMA) – a factor that is putting significant pressure on the key support area at $1.64, which is the bottom established on May 17.

Chart VIRTUAL/USDT daily | Source: TradingViewIf the price breaks the support level of $1.64, the downtrend may continue, with the next target at the support level of $1.39 – the closing level from May 7. In this scenario, the 100-day EMA around the $1.57 area could act as an important medium-term support buffer.

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 bearish momentum is significantly increasing.

On the contrary, if VIRTUAL bounces back from the $1.64 level and breaks through the weekly high at $2.01, the bearish outlook could be invalidated, opening up opportunities for a new recovery cycle.

WIF faces the risk of a deeper fall

Dogwifhat (WIF) – a famous meme coin on the Solana ecosystem – has just recorded a fall of over 7% during the market's strong correction on Tuesday, dropping to the lowest point in the past 30 days. Notably, WIF has also breached the key support level at $0.798 – a price range that has been held firm multiple times in recent weeks.

Daily WIF/USDT Chart | Source: TradingViewIncreasing selling pressure is pushing WIF into a danger zone, with the possibility of continuing to fall to the next support level at $0.550 – a price that was last tested on May 6.

The technical signals are clearly warning: the MACD indicator is sliding down and has fallen into the negative zone, while the signal line shows a new bearish trend is clearly forming.

However, the market still has hope. If WIF can regain the lost support zone at $0.798, the recovery momentum may be triggered, opening up the opportunity to return to the important psychological level at $1.

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