XRP price dropped over 20% to $1.70, falling below its 200-day moving average
Bitcoin fell below $75,000 as part of a broader crypto market decline
The sell-off is linked to President Trump’s tariff measures against China, Canada, and Mexico
Traders expect continued market decline when US markets open
Technical indicators suggest a bearish outlook with XRP completing a head-and-shoulders pattern
The cryptocurrency market experienced a severe sell-off in the early hours of Monday, with XRP being one of the hardest-hit tokens. The digital asset, which powers the XRP Ledger, plummeted over 20% in a 24-hour period, falling to $1.70 and breaking below its critical 200-day moving average support level.
This dramatic price movement comes as part of a broader market decline that saw Bitcoin pierce the $75,000 level and other major cryptocurrencies suffer substantial losses.
The market turmoil erased tens of billions in market capitalization across the crypto sector. The CoinDesk 20 index, which tracks the performance of the largest tokens, slumped 12%, signaling widespread risk-off sentiment.
XRP wasn’t alone in its descent. Other major cryptocurrencies including Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) all experienced double-digit percentage drops.
SOL fell below $100, breaking its 50-day moving average and marking a 64% retreat from its all-time high.
DOGE tumbled 20% to $0.13, while ADA dropped to 55 cents, representing a 12% decline in a single day.
Technical Factors Behind XRP’s Decline
From a technical analysis perspective, XRP’s drop below $2.00 completes a bearish head-and-shoulders pattern, often seen as a signal of potential further downside.
The 21-day exponential moving average (EMA) for XRP sits at $2.20, now acting as resistance after the token failed to reclaim this level in recent weeks.
The Relative Strength Index (RSI) has dipped into negative territory, hovering near 30, suggesting selling pressure currently outweighs buying interest in the market.
If current support at $1.70 doesn’t hold, analysts fear XRP could see further downside movement toward $1.75 in the near term.
Macroeconomic Pressures Driving the Sell-Off
The crypto market downturn can be traced to several macroeconomic factors, with President Donald Trump’s recent tariff policies playing a central role.
Trump recently announced 25% tariffs on imports from Canada and Mexico, along with a doubled 20% levy on Chinese goods. These measures have sparked retaliatory threats and increased market uncertainty.
China is reportedly considering front-loaded stimulus measures to counter these tariffs, adding to market jitters and prompting investors to flee risk assets.
Many traders are moving capital to traditional safe-haven assets like gold, the Japanese yen, and the Australian dollar as concerns about an “economic nuclear war” grow.
The tariff situation has created volatility across all financial markets, not just cryptocurrencies. Global equities have also seen substantial drops, with some predicting Monday could be “ugly” for stock markets.
Market Outlook and Trader Sentiment
Trading experts anticipate that the market decline could continue through the Asian day ahead of the U.S. market open.
Jeff Mei, COO at BTSE, noted that “crypto markets tend to front-run stock markets over the weekend” and expected additional dips once U.S. markets opened.
According to Mei, market recovery depends on which countries can secure short-term tariff delays or deals. While smaller economies like Vietnam, Cambodia, and Taiwan have made concessions, larger trading partners like Japan or China would need to reach agreements to restore market confidence.
Augustine Fan from SignalPlus characterized the current price action as displaying bear market behavior, suggesting that “rallies are to be sold” and investors will need to accept this “new reality.”
The combined crypto market has lost approximately $1.3 trillion in value since January, with Bitcoin down from its recent high of almost $90,000 last week.
The next key support level for Bitcoin lies around $72,000, which marked the pre-election high according to Charlie Sherry, head of finance and crypto analyst at BTC Markets.
While long-term charts might suggest Bitcoin has broken out against global equities, catalysts for recovery appear limited at this time, and risk management will likely dominate until global markets stabilize.
One thing seems certain: market volatility will continue as traders and investors navigate this period of macroeconomic uncertainty and tariff-related tensions.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
