TLDR
- XRP, SOL, and DOGE have plunged over 20% in a market-wide crypto sell-off
- Bitcoin fell below $75,000 as the CoinDesk 20 index slumped 12%
- President Trump’s 25% tariffs on Canada, Mexico, and increased levies on China sparked market uncertainty
- Technical indicators show major cryptocurrencies breaking below critical support levels
- Traders expect continued decline when US markets open, with some describing “bear market” behavior
The cryptocurrency market experienced a dramatic sell-off on Monday morning, with major tokens falling sharply as bitcoin dipped below the $75,000 mark. XRP, Solana (SOL), and Dogecoin (DOGE) were among the hardest hit, each tumbling more than 20% in a 24-hour period that erased tens of billions in market value.
The broad-based CoinDesk 20 index, which tracks the performance of the largest cryptocurrencies, dropped 12%. This indicates widespread risk aversion across the sector as investors fled to safer assets like gold and the Japanese yen.
XRP fell to $1.70, breaking below its 200-day moving average, a technical indicator many traders watch closely. SOL crashed under the $100 level, breaching its 50-day moving average and now sits 64% below its all-time high.
DOGE wasn’t spared in the downturn, falling to $0.13. The popular meme coin has seen its price tumble into oversold territory according to technical indicators, with the Relative Strength Index (RSI) dipping to 28.
Tariff Tensions Trigger Market Turmoil
The market turbulence comes in the wake of President Donald Trump’s recent tariff announcements. Trump imposed 25% tariffs on imports from Canada and Mexico, while doubling levies on Chinese goods to 20%.
These measures have prompted threats of retaliation from affected countries. China is reportedly considering front-loaded stimulus measures to counter the economic impact of the tariffs.
The situation has been described by hedge fund manager Bill Ackman as an “economic nuclear war.” The uncertainty has sent shockwaves through global markets, affecting everything from cryptocurrencies to equities.
Cardano’s ADA token also suffered in the downturn, trading at 55 cents after a 12% drop. The token fell below its 50-day simple moving average, which had provided support since mid-March.
Technical analysis shows a bearish head-and-shoulders pattern forming for XRP, suggesting the potential for further downside. For ADA, a descending triangle pattern indicates continued bearish control.
Further Declines Expected
Traders are bracing for continued market weakness when U.S. markets open. “Historically, crypto markets tend to front-run stock markets over the weekend, and this morning’s Asia market declines seem to have reinforced this belief,” said Jeff Mei, COO at BTSE.
“We expect crypto markets to dip once US markets open,” Mei added. He noted that market recovery would depend on whether large countries can secure short-term tariff delays or deals in the coming week.
Several smaller nations including Vietnam, Cambodia, and Taiwan have already pledged to lower their own tariffs or increase U.S. investment in exchange for relief. However, Mei believes agreements with larger trading partners like Japan or China would be needed to restore market confidence.
Augustine Fan, head of insights at SignalPlus, described the current price action as displaying bear market behavior. “All the signs suggest that macro markets are now in ‘bear market’ mode, rallies are to be sold, and investors will be forced to accept this new reality,” Fan said.
The next support level for ADA lies near 35 cents, a price point tested in late 2024. A break below this level could push ADA toward $0.40, representing a 30% decline from current levels.
For DOGE, the technical picture appears equally concerning. A death cross has emerged on the 4-hour chart, with the 50-period simple moving average crossing below the 200-period simple moving average.
This technical formation often signals a potential trend reversal to the downside. With resistance now at $0.21, DOGE could potentially sink to $0.14 if selling pressure continues.
The cryptocurrency market downturn mirrors broader economic concerns as investors assess the impact of escalating trade tensions. With nearly $1 billion in liquidations and a 20% loss in total crypto market capitalization this year, traders remain cautious about near-term prospects.
Market participants will be closely watching for any signs of diplomatic progress on the tariff front, as well as key technical levels that might indicate whether the current decline is a correction or the beginning of a more extended bear market.
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