Major Cryptocurrencies Plunge: Ethereum, Solana, XRP suffer 10%+ Downturn

Key Points

• Bitcoin’s dominance increased to 63%, causing further declines in altcoins.
• Major altcoins breached key supports due to macroeconomic uncertainties related to Trump tariffs.

Bitcoin (BTC) fell below $80k, reaching its March lows of $76k due to Trump’s higher-than-anticipated tariffs. This resulted in sell-offs across traditional markets, leading altcoins, and memecoins.

Amidst this macroeconomic instability, Bitcoin’s dominance rose to 63%, hindering altcoins’ recovery as investors moved their capital to Bitcoin. This raises questions about whether top majors like Ethereum (ETH), Solana (SOL), Cardano (ADA), XRP, or memecoins will see any relief.

Price Analysis of ETH, XRP, ADA, and SOL

Ethereum is currently under the control of short-sellers, with the RSI in oversold territory. This could indicate a possible reversal, however, Ethereum has been affected by strong negative sentiment, dragging the ETH/BTC ratio to a 5-year low.

If the bulls fail to maintain above $1.5k, Ethereum could range between $1K-$1.5k in the short to medium term. A move above the 200WMA (weekly moving average) of $2.4k could strengthen the bulls’ position.

Solana, on the other hand, lost its 2024 yearly support of $120, giving short sellers more market control. It plunged to $100 for the first time since early 2024, resulting in a 67% loss from its peak of $295.

If the broader weak sentiment continues, the early 2024 price range of $80-$120 and the 200WMA of $94 would be key levels to monitor in the short term.

Interestingly, only Cardano and XRP retained some of their U.S election gains. However, they are still at risk of losing the remaining gains.

XRP still holds 220% gains since the U.S elections, but it fell below $1.9 – a level that if breached could validate a bearish head-shoulder pattern and pull XRP down to $1.0. The weak demand in March and muted volumes corroborate this outlook.

For Cardano, capital inflows and demand slowed down in April after a slight recovery in March. If sellers break below the trendline support, a drop towards the pre-U.S election level below $0.40 might be likely.

Despite the bearish outlook, most of the top majors’ RSIs were in the oversold zone, which could reverse in case of positive catalysts.

Impact on Memecoins

Speculative interest in memecoins was hit hardest by investors’ risk-off mode. Open Interest (OI) in the sector dropped by 20% and was ranked 11th in the last 24 hours according to Coinglass data.

Investors should monitor updates on Trump’s tariffs as they could influence inflation, Federal rate cut expectations, and the price direction of assets in the medium term.