Daily Crypto Signals: Bitcoin Struggles Below $90K, XRP Corrects as Trade Wars Intensify
The cryptocurrency market experienced a downturn today, driven by escalating global trade tensions and significant long liquidations, while Bitcoin continues to face resistance below $90,000 and XRP undergoes a notable price correction. Despite positive developments like the US Senate voting to repeal the IRS DeFi broker rule, overall market sentiment remains cautious.
Crypto Market Developments: Trade War Fears and Liquidations Trigger Downturn
On March 27, the market for cryptocurrencies saw a fall; overall market capitalization dropped by 0.91% to about $2.77 trillion. The US government’s declaration of extra tariffs on imports from Canada, Mexico, and China has caused fresh worries of a worldwide economic crisis that mostly explains this slump. These protectionist policies have lessened risk attitude in several asset types, including cryptocurrency. Further aggravating the sell-off was notable liquidations of overleveraged long positions in the market.
Especially, the US Senate voted to revoke the Biden-era IRS DeFi broker rule, a decision the crypto market cheered. Nonetheless, a poll shows that despite growing investor demand, most European banks are still not providing crypto services, therefore pointing out a market gap. Moreover, SEC candidate Paul Atkins came under examination during his Senate confirmation hearing for his connections to the cryptocurrency sector, especially with relation to the advising function of his former company with the closed-owness FTX exchange.
Bitcoin Unable to Breach $90,000 Resistance Amidst Selling Pressure
Currently trading around $87,200, Bitcoin BTC/USD is finding difficulty rising above the $90,000 resistance level. Constant sell-side pressure from short-term holders who bought at higher levels and are now experiencing losses is one of several elements causing this ongoing conflict. Data shows that, at the highest level since July 2018, short-term holders of Bitcoin have lately been in loss.
Furthermore suggesting a decline in market liquidity are declining onchain transfer volumes and active address counts. Investors are also looking forward the expiry of a record-breaking $16.5 billion Bitcoin options on March 28, which could cause even more market turbulence as the week advances. Although bulls dream of a separation from conventional markets, risk attitude and more general macroeconomic issues nonetheless shape Bitcoin’s price movement.
XRP Price Corrects After Failure to Rally on SEC Case News
Today’s price correction for XRP XRP/USD dropped about 3.8% to roughly $2.33. Despite Ripple’s recent decision to discontinue its cross-appeal in the continuous dispute with the US Securities and Exchange Commission, a step that first failed to cause a notable market rebound, this downturn comes nonetheless. Moreover adding to the gloomy attitude in the derivatives market is the lack of vitality shown by low open interest and negative financing rates.
Technically, XRP has shown a bear flag pattern on the daily chart, implying that should the critical support at $2.20 fail, there may be another decline toward the $1.60 level. Veteran trader Peter Brandt has also noted a likely head-and-shoulders pattern on XRP’s chart, suggesting a 50% loss, therefore augmenting the cautious view of the coin.
Solana Struggles to Reclaim $150 Amidst Fading Memecoin Mania
After a strong rejection earlier in the week, Solana’s native token, SOL, is currently trading at $138 and is finding challenges recovering the $150 mark. Driven mostly by the memecoin fever and the growth of AI-related industries, the upward impetus that formerly drove Solana’s SOL/USD price seems to be fading. Reduced network activity is shown by dropping Solana’s DApp income and chain fees as onchain volumes have dropped.
Moreover, some investors were let down by the US government’s strategic Bitcoin reserve announcement since it omitted any reference to Solana or other altcoins. Although some analysts still see Solana’s potential in sectors like mobile apps and tokenized real-world assets bright, the network is now under more competition from other blockchains and its onchain activity lags behind rivals like BNB Chain in terms of DEX volume.
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