Why is the crypto market down today? XRP, DOGE, and ADA lead weekly losses

The global cryptocurrency market cap is down by over $200 billion in the last seven days, while the altcoin markets have shed more than $20 billion from their total valuations within the last 24 hours. The crypto market is yet to react positively after US Crypto Czar David Sacks held an “eventful” digital currencies press conference on Tuesday.

According to Coingecko data, most assets within the top 100 market cap ranking have not regained losses amassed over the past weekend. Analysts attributed the trade bloodbath to the trade tariffs announcements made by US President Donald Trump on January 31.

In the weekly charts, all the crypto assets bar stablecoin USDT are still changing hands in the red.

Monday saw more than $1 billion in liquidations from the market, but the figure cooled down to about $300 million yesterday, as revealed by Coinglass.

Crypto liquidations chart. Source: Coinglass.

Among the biggest losers are Ripple (XRP), Dogecoin (DOGE), and Cardano (ADA), which have all recorded intra-week declines of over 19%.

XRP struggles to breach resistance levels

XRP, Ripple’s native token, is facing major rejections around $2.8 and $3. Since February 1, the coin has not traded above $2.7. This week, traders have seen the coin drop below $2, then make a recovery. While the recovery indicates some demand, sellers have solidified their positions to push XRP downwards.

Technical analysts warn that XRP must hold above $2.50 to avoid further declines. If the level fails, the next critical support zones lie at $2.00 and $1.61. On the upside, a reclaim of $2.70 could reignite bullish momentum.

On Monday, crypto analyst EGRAG CRYPTO cautioned investors that the asset could drop further to $2.30, with $1.90 as a crucial support level. While his outlook leans bearish, he suggested that the dip could present a buying opportunity for traders anticipating a rebound.

#XRP – 21 EMA Update 📉

Sorry for calling for this crash but the chart indicated it was a possibility.

We could see a drop as low as $2.30, with $1.90 being the last line of defense.

If you’re looking for a dip to buy, this is it. But don’t let fear hold you back! 🐔💪

We… https://t.co/LMGpbgj02M pic.twitter.com/pGEzNQqgAY

— EGRAG CRYPTO (@egragcrypto) February 2, 2025

Since XRP is trading above this level, there’s a possibility of continued upward momentum in the medium and long term, if the coin builds its support at around the $2.4 level.

Dogecoin faces heavy selling pressure

Dogecoin has lost 20.1% in value in the last week. This has extended its monthly losses to 30.59%. Despite the recent downturn, DOGE remains up 236.20% year-over-year. The token recently rebounded 8% from a weekly low of $0.22. However, the downward pressure still persists.

DOGE‘s price currently stands at $0.2653 – the resistance is near $0.28112. The RSI sits at 41, meaning Dogecoin is attempting to recover from oversold conditions. However, the memecoin MACD’s weak bullish crossover at −0.02175 indicates close to zero price momentum.

NEW TECHNICAL ANALYSIS ALERT 🔔

M15 Analysis for DOGE/USD:

Scalping perspective:
– Price action shows bearish pressure below 0.28112 resistance with declining volume, suggesting weakening momentum
– Immediate support at 0.27439 could provide scalping opportunities if price… pic.twitter.com/RztQlsMXpf

— Thomas Anderson (@veryquest1onab1) February 4, 2025

DOGE’s price action remains bearish. Recently, multiple attempts to break above $0.28112 have been met with selling pressure. Analysts note that a break below $0.27439 could accelerate losses, potentially pushing the price toward $0.26470. Despite the recent bounce, the probability of further downside remains at 70% given the MACD crossover and RSI positioning below 50.

Analysts mark key resistance levels at $0.2811 and $0.2888. However, if DOGE fails to hold the $0.26470 price, the selloff could become worse.

Cardano downward trend continues

Cardano (ADA) has faced a rough couple of months. The coin has yet to break $2 even after the Trump-led rally. Predictions have the coin experiencing continued corrective movement toward the lower bound of its descending channel.

ADA/USDT trading chart. Source: TradingView

Medium-term support is positioned at $0.40, a level that could determine whether ADA extends its losses.

Recent price data shows ADA/USD experiencing volatility, with a decline from $0.977 to $0.75 over the past month. Despite the pullback, technical indicators suggest mixed signals. The RSI remains elevated at 77.98, indicating that ADA bears haven’t pushed the barriers enough for selling pressure to grow.

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