XRP, ADA, DOGE Enter Bear Territory as Crypto Market Sheds Billions

The cryptocurrency market experienced significant losses at the start of the week, with altcoins like XRP, Cardano (ADA), and Dogecoin (DOGE) suffering substantial declines. This downturn reflects a broader risk-off sentiment in the global market, mirroring a state of emergency in the global economy, largely fueled by escalating global tariff tensions.

Hundreds of billions of dollars in cryptocurrency market value evaporated within the past seven days, and analysts warn that further losses are possible. A confluence of macroeconomic concerns is creating a perfect storm as the US and other major economies face what hedge fund billionaire Bill Ackman describes as an "economic nuclear war."

Bitcoin, often considered a leading indicator of market sentiment, fell below $75,000 earlier today. While still down 9% over the past 10 days, this relative stability contrasts sharply with the steeper declines seen in altcoins.

Economist and crypto analyst Alex Krüger commented, "This is a widespread unwinding of the kind seen in traditional economies. The current situation transcends mere crypto fundamentals; it's the direct consequence of real-world trade policy impacting digital asset risk."

XRP Breaks Below $2 Support

XRP's drop to $1.77 (a 15.26% decrease in 24 hours) decisively broke through the crucial $2 support level. Analysts point to this as confirmation of a bearish head-and-shoulders pattern, a technical indicator suggesting a price reversal. Ava Moretti of Meridian Markets noted, "This wasn't entirely unexpected. XRP had been attempting to surpass its 21-day EMA near $2.20. Escalating geopolitical risk provided the necessary catalyst."

While the Relative Strength Index (RSI) stands at 30, indicating XRP is oversold, historical data suggests that RSI-driven rebounds in XRP are typically weak unless supported by significant news or institutional investment. If bearish momentum persists, the next support level for XRP is $1.65, last tested in December. A breach below this could trigger a further decline towards $1.40.

Cardano (ADA) Faces Bearish Pressure

Cardano's ADA token is also under pressure, falling below its 50-day simple moving average to trade around $0.54—a 14.84% drop in the last 24 hours. Technical indicators strongly suggest a bearish trend.

ADA's decline coincides with the formation of a descending triangle, a pattern typically associated with continued downward price movement. Marcus Liddle of QuantFusion stated, "The 50-day SMA had served as support since mid-March. Losing this level, coupled with a bearish MACD crossover and an RSI below 40, paints a bleak outlook."

Bulls are eyeing $0.35 as the final line of defense, a key demand zone from Q4 of last year. However, regaining upward momentum may prove challenging given the slowing growth of Cardano's ecosystem and intensifying macroeconomic headwinds. Liddle added, "Even with a bounce, reclaiming $0.60 and establishing it as support is crucial; otherwise, we're setting up for another downturn."

Dogecoin (DOGE) Loses Momentum

Dogecoin, known for its social media-driven price surges, is not immune to the current market downturn. It fell to $0.13, a 16% decrease in 24 hours, breaking through its $0.18 support level that had held since early March.

The 4-hour chart displays a classic "death cross," where the 50-period moving average crosses below the 200-period moving average—a bearish signal. Kelsey Tran, crypto strategist at Fireblock Insights, commented, "DOGE has lost its momentum. Without social media hype or positive macroeconomic factors, these tokens are subject to the laws of supply and demand."

Although the RSI is oversold at 28, suggesting a potential short-term bounce, resistance at the 20-day EMA near $0.21 may limit any upward movement. The next support level is at $0.14, near its late 2024 lows.

Impact of Global Tariff Tensions

The current market sell-off is largely attributed to the ongoing tariff war initiated by the Trump administration. The new policy imposes a 10% baseline tariff on all imported goods and includes threats of further retaliatory measures against countries deemed to impose "unfair" duties on US exports.

Bill Ackman's statement on CNBC on Monday underscored the gravity of the situation: "This isn't just a trade war; this is an economic nuclear war impacting all risk assets, from equities to crypto."

Market participants widely agree that the current administration's strategy may have unforeseen negative consequences. In recent weeks, US stocks have reportedly lost $11 trillion in market capitalization.

Bitcoin's Relative Resilience

Bitcoin has dipped to $75,000, demonstrating vulnerability but also relative strength compared to other assets. Veteran trader Scott Melker noted, "Bitcoin is performing significantly better than altcoins, consistent with historical patterns during periods of widespread risk aversion. It remains the go-to safe haven asset in the crypto world."

However, Melker cautions that unless inflation cools and expectations of interest rate cuts resurface, Bitcoin may also face further pressure in the coming weeks.

Conclusion: Further Downward Pressure Likely

Across all technical indicators and sentiment trackers, the outlook is bearish. The Fear & Greed Index is in "Extreme Fear," and liquidations reached $840 million on Monday alone, according to Coinglass.

Ava Moretti concluded, "With altcoins underperforming and liquidity drying up, another downward leg is likely. Unless we see clarity on tariffs or a surprisingly dovish stance from the Fed, markets will likely continue to decline."

The declines in XRP, ADA, and DOGE highlight the vulnerability of altcoins during periods of heightened geopolitical and macroeconomic stress. While technical indicators may suggest short-term bounces, the overall sentiment remains negative. As long as the global tariff war persists, risk assets, including cryptocurrencies, will likely remain volatile. Caution is advised, as previously reliable support levels are now proving fragile.

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