The two are both valid, and to my eye are in fact subtly different.
"First rank" is not exclusive. There may be a number of universities on the first rank, all of the same class. Hence:
"Sharif University of Technology, the first rank technical university of Iran" suggests that S.U.T. is one of the best technical universities (in the world), and of all of those world-first-class universities, it's the only one of its class in Iran.
"First ranked" does actually literally mean "ranked first", that is, it is the absolute top.
"Sharif University of Technology, the first ranked technical university of Iran" then says that S.U.T. is the best technical university in Iran -- but it also has no possible connotation of being one of a number of institutions (including of anywhere else) of the same echelon.