The cryptocurrency market kicked off the week with sharp losses, with altcoins like XRP, Cardano (ADA) and Dogecoin (DOGE) taking gruesome hits. This is largely because the broader market is in risk-off mode, think of it as the global economy’s version of a “code red.” And at the heart of it is the spiralling global tariff war.
Over hundreds of billions in crypto market value has vanished in the past seven days. Analysts are warning that the damage may not be done yet. We’re seeing a perfect storm of macroeconomic concerns as the US and other major economies enter what hedge fund billionaire Bill Ackman calls an “economic nuclear war.”
Bitcoin, often the market’s canary in the coal mine, dropped below $75K during the early hours of today. It’s still down 9% in the last 10 days, which is relatively stable compared to those altcoins.
“This is a full-scale unwind of the kind you see in real-world economies,” said Alex Krüger, economist and crypto analyst. “What we’re seeing isn’t just crypto fundamentals—this is the fallout of real-world trade policy bleeding into digital asset risk.”
XRP Cracks $2 Floor as Bearish Pattern Plays Out
XRP’s fall to $1.77 (down 15.26% in 24 hours) marked a definitive breakdown of the crucial $2 level. Analysts note the move confirms a bearish head-and-shoulders formation—a reversal pattern in technical analysis. “It wasn’t entirely unexpected,” said Ava Moretti of Meridian Markets.
“XRP had been trying to break above its 21-day EMA near $2.20 for a while. It just needed a catalyst—and that came in the form of escalating geopolitical risk.”
The Relative Strength Index (RSI) is at 30, indicating XRP is oversold. But history shows that RSI-driven rebounds in XRP tend to be weak unless there’s some structural news or institutional inflows to back them up.
If bears retain control, the next support level for XRP is at $1.65, a level last tested in December. A break below that could trigger a cascade toward $1.40.
ADA Bears Tighten Grip as Key Triangle Breaks
Cardano’s ADA token is also under pressure, slipping below the 50-day simple moving average to trade around $0.54. That is a 14.84% down move in the last 24 hours, and technical signals are firmly bearish.
ADA’s breakdown coincides with the formation of a descending triangle, a pattern that usually signals continuation to the downside.
“The 50-day SMA was a floor since mid-March,” said Marcus Liddle of QuantFusion. “Losing that level, alongside a bearish MACD crossover and an RSI under 40, paints a pretty grim picture.”
The bulls are watching $0.35 as the last line of defense. That was a key demand zone in Q4 last year. But reclaiming momentum may be difficult in the current environment, with Cardano’s broader ecosystem growth slowing and those macro headwinds intensifying.
“Even if ADA bounces, reclaiming $0.60 and flipping it into support is absolutely critical,” Liddle added. “Otherwise, you’re just setting up for another leg lower.”
DOGE Slides as Meme Momentum Fades
Dogecoin, known for its social-driven pumps, isn’t immune to the macro freeze. It dropped to $0.13, down 16% in 24 hours, through its $0.18 support that had held since early March.
The 4-hour chart shows a classic “death cross” where the 50-period moving average crosses below the 200-period—a bearish signal.
“DOGE has lost its juice,” said Kelsey Tran, crypto strategist at Fireblock Insights. “Without meme hype or macro tailwinds, these tokens revert to technical gravity.”
The RSI is oversold at 28 which could be a short-term bounce. But resistance at the 20-day EMA near $0.21 may cap any up moves. Next support is at $0.14 which is the late 2024 lows.
Bill Ackman Warns of ‘Economic Nuclear War’ as Tariff Tensions Escalate
At the heart of the sell-off is the tariff war led by the Trump administration. The new policy imposes a 10% baseline tariff on all imported goods and threatens further retaliatory measures against countries that impose what the White House calls “unfair” duties on US exports.
“This is no longer a trade war,” said Bill Ackman on CNBC on Monday. “This is an economic nuclear war that’s going to impact every risk asset, from equities to crypto.”
Market participants agree the current administration’s strategy may have unintended consequences. In the past few weeks, US stocks have already lost $11 trillion in market cap according to TradingView and The Kobeissi Letter.
Bitcoin Holds Up, But Altcoins Still Suffer
Bitcoin itself has dipped to $75K and has shown it is not immune but experts believe compared to other assets, it might be holding off better.
“Bitcoin is holding up way better than altcoins which is consistent with historical patterns during broad risk-off events,” said veteran trader Scott Melker. “In the crypto hierarchy it’s still the flight-to-safety asset.”
But Melker warned unless inflation cools and rate cut hopes come back, even Bitcoin may see more pressure in the coming weeks.
Conclusion: More Capitulation If Sentiment Doesn’t Turn
Across all technical dashboards and sentiment trackers, it’s bearish. Fear & Greed Index is in “Extreme Fear” and liquidations across the market were $840 million on Monday alone according to Coinglass.
“With altcoins underperforming and liquidity drying up, there’s another leg down,” said Ava Moretti. “Unless we get clarity on tariffs or a dovish surprise from the Fed, markets will continue to bleed.”
The drop in XRP, ADA and DOGE shows altcoins are exposed in times of high geopolitical and macro stress. Technicals may offer a short-term bounce but overall sentiment is negative.
As long as the global tariff war continues to rage, risk assets including crypto will be volatile. Tread carefully, as support levels that were once solid are now crumbling.
FAQs
Why did XRP, ADA, and DOGE drop so hard?
These altcoins fell due to macroeconomic uncertainty and global tariff tensions, which triggered a market wide sell off across both crypto and equities.
What are the support levels in crypto?
Support levels are where buying outweighs selling. When a token breaks below these levels, it usually means more downside.
What is a death cross?
A death cross is ‘when a short-term moving average (e.g., 50 periods) crosses below a long-term moving average (e.g., 200 periods) and is a bearish signal.
Is Bitcoin also going to drop?
While Bitcoin has been more stable than altcoins, it’s still vulnerable to macro forces and could go lower if volatility continues.
How are global tariffs affecting crypto?
Trade restrictions and economic uncertainty reduce investor appetite for risk and leads to capital outflows from speculative assets like cryptocurrencies.
Glossary
Support Level: A price level where an asset tends to stop falling due to buying interest.
Death Cross: A bearish ‘technical indicator where a short-term moving average falls below a long-term moving average.
RSI (Relative Strength Index): A momentum oscillator that measures the speed and ‘change of price movements. Below 30 is oversold.
Descending Triangle: A bearish chart pattern where a series of lower highs converge to a flat support line.
EMA/SMA: Exponential and simple moving averages used to smooth price data over time to identify trends and reversals.
References
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