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 $90000 and XRP undergoes a notable price correction.

The cryptocurrency market experienced a downturn today, with Bitcoin struggling to break through the $90,000 resistance and XRP undergoing a notable price correction as trade wars intensified and triggered significant long liquidations.

While the US Senate’s vote to repeal the IRS DeFi broker rule brought cheer to the crypto market, overall market sentiment remains cautious.

Crypto market news: Trade war fears and liquidations trigger downturn

On March 27, the market for cryptocurrencies saw a decline; overall market capitalization decreased by 0.91% to reach approximately $2.77 trillion. The US government’s declaration of additional tariffs on imports from Canada, Mexico, and China has brought fresh concerns of a global economic crisis, which mainly explains this downturn.

These protectionist policies have reduced risk appetite in several asset classes, including cryptocurrency. Furthermore, substantial liquidations of over-leveraged long positions in the market are exacerbating the sell-off.

Specifically, the US Senate voted to overturn the Biden-era IRS DeFi broker rule, a decision that the crypto market welcomed. However, a survey reveals that despite increasing investor demand, a majority of European banks are still not offering crypto services, thus highlighting a market gap.

Moreover, SEC candidate Paul Atkins faced scrutiny during his Senate confirmation hearing for his links to the cryptocurrency sector, particularly with regard to his former company’s advising role with the bankrupt FTX exchange.

Bitcoin fails to breach $90,000 resistance amid selling pressure

Bitcoin BTC/USD is currently trading at around $87,200 as it faces difficulty breaking through the $90,000 resistance level. This ongoing struggle is attributed to several factors, including persistent sell-side pressure from short-term holders who purchased at higher levels and are now experiencing losses.

The data reveals that at the highest level since July 2018, short-term holders of Bitcoin have recently been in the red.

Furthermore, decreasing onchain transfer volumes and active address counts suggest a reduction in market liquidity. Investors are also anticipating the expiry of a record-breaking $16.5 billion Bitcoin options on March 28, which could introduce further market volatility as the week progresses.

Despite bulls hoping for a decoupling from traditional markets, Bitcoin's price movements are still influenced by risk appetite and broader macroeconomic issues.

XRP price corrects as traders grow weary of SEC case hopes

Today saw a decline of about 3.8% in the price of XRP XRP/USD, reducing it to approximately $2.33. This downturn follows a prior step by Ripple to withdraw its cross-appeal in the ongoing dispute with the US Securities and Exchange Commission, which failed to immediately spark a significant market rebound.

This lack of vitality in the derivatives market is further highlighted by low open interest and negative funding rates, which adds to the gloomy mood.

Technically, XRP has displayed a bear flag pattern on the daily chart, suggesting that a breach of the crucial support at $2.20 could lead to further decline toward the $1.60 level. Veteran trader Peter Brandt has also observed a probable head-and-shoulders pattern on XRP's chart, which predicts a 50% loss, thus strengthening the bearish view on the coin.

Solana struggles to reclaim $150 as memecoin mania fades

After strong rejection earlier in the week, Solana's native token, SOL, is currently trading at $138 as it faces challenges recovering the $150 mark.

The upward momentum that previously drove Solana's SOL/USD price is fading, which is mainly attributed to the memecoin fever and the growth of AI-related industries.

Onchain volumes have decreased, DApp revenue and chain fees on Solana are falling, which suggests reduced network activity.

Moreover, some investors were disappointed by the US government's strategic Bitcoin reserve announcement as it omitted any mention of Solana or other altcoins.

Although some analysts remain optimistic about Solana's potential in sectors like mobile apps and tokenized real-world assets, the network now faces more competition from other blockchains, and its onchain activity lags behind rivals like BNB Chain in terms of DEX volume.