Bitcoin continues to show signs of weakness as it traded below $82,000 on Monday, March 31, 2025, following a 4.29% decline in the previous week. Ethereum and Ripple (XRP) also faced significant downturns, with Ethereum dropping by 9.88% and XRP declining by 12.40%. The cryptocurrency market is experiencing volatility, largely influenced by economic factors and upcoming U.S. tariffs.
According to a report from the Wall Street Journal, President Trump's team is considering "broader and higher tariffs" ahead of the April 2 deadline for reciprocal tariffs. This potential move includes an "across-the-board hike of up to 20%," which has raised concerns among investors regarding its impact on the economy and financial markets.
Bitcoin's price had previously been consolidating between $85,000 and $88,000 until March 27, but it closed below its lower consolidation boundary on March 28, leading to a further decline of 5.53% by March 30. At the time of writing, Bitcoin continues to trade down below $82,000. If this trend continues, analysts suggest that Bitcoin could retest its next support level at $78,258. The Relative Strength Index (RSI) indicator on the daily chart indicates strong bearish momentum, reading 40, which is below the neutral level of 50.
Ethereum also faced challenges as its price closed below the critical daily support level of $1,861 last week, hovering around $1,800 on Monday. If the downward trend persists, Ethereum may decline further to test the psychological level of $1,700. The RSI for Ethereum is at 34, also indicating strong bearish momentum.
Ripple's price fell below its 100-day Exponential Moving Average (EMA) at $2.30 last week and continued its downward trajectory, trading around $2.11 on March 31. Analysts warn that if XRP does not recover soon, it could test its next support level at $1.96. The RSI for Ripple is at 39, similarly reflecting bearish momentum.
As the crypto market grapples with these declines, it remains fundamentally well-positioned for potential growth in April and beyond. Factors such as anticipated interest rate cuts by the Federal Reserve and the SEC's efforts to clarify regulations for cryptocurrency builders could create a more favorable environment for investors.
Despite the current volatility, there are opportunities for savvy investors. Some analysts suggest that positioning correctly now could lead to significant gains in the future. The upcoming tariffs, referred to by Trump’s team as "Liberation Day," are expected to create further market fluctuations, but they may also present buying opportunities.
In the realm of meme coins, projects like Solaxy and MIND Of Pepe are gaining traction. Solaxy, currently in presale and having raised $28 million, aims to address congestion issues on the Solana blockchain by offering a layer 2 solution designed for meme coin trading. Meanwhile, MIND Of Pepe, which has raised $7.7 million in its presale, combines the popularity of the Pepe the Frog meme with an AI agent that provides trend analysis and insider information for token launches.
Additionally, Four, a viral token on the BNB Chain, is making waves with its meme coin launchpad. The platform allows users to create meme coins quickly, and its recent momentum has been bolstered by Binance founder Changpeng Zhao's investment in the project, which previously led to a 30x price increase for one of its tokens.
Render, another Solana-based project, focuses on providing a distributed network of GPU power for developers, aiming to meet the growing demand for graphic rendering resources, especially in the context of generative AI advancements. As the need for GPU power continues to rise, Render's model could position it as a strong investment opportunity.
Overall, while the cryptocurrency market faces immediate challenges, including the impacts of potential tariffs and economic uncertainty, there are signs of resilience and opportunity for investors willing to navigate the current landscape.
