Bitcoin, XRP, and Doge React to US-China Trade War: Another Crypto Crash Ahead?

XRP and Dogecoin jumped 20% before crashing again as rising tensions between the U.S. and China rattled the crypto market. Bitcoin briefly crossed $100K after President Trump paused tariffs on Mexico and Canada but dropped to $98K when China hit back with new tariffs on U.S. imports.

Even though crypto is decentralized, it still reacts like traditional financial markets. Many believe this conflict isn’t just about trade – it’s about control over global finance and supply chains. If the U.S. keeps escalating tensions, China may speed up efforts to move away from the dollar, push its central bank digital currency (CBDC), and tighten its grip on key industries.

A Wild Ride for XRP and Dogecoin

Crypto traders rushed to buy the dip after Monday’s $2.2 billion liquidation, driving up prices for XRP and Dogecoin. But when China retaliated with new tariffs, those gains vanished just as fast. XRP, Dogecoin, Solana (SOL), and Cardano (ADA) still managed to hold onto a 3% increase, while Bitcoin (BTC) and Ethereum (ETH) were up about 4%. However, market volatility remains high.

Will the Trade War Slow the Crypto Bull Run?

Ben El-Baz, Managing Director of HashKey Global, warned that the trade war could weaken investor confidence and slow the crypto bull market. However, he believes the impact could be limited if the U.S. introduces more crypto-friendly policies.

Analysts are split on how long the market chaos will last. Min Jung from Prestro Research noted that while Bitcoin is often called “digital gold,” it still behaves like a risky asset. That means global events—like China’s tariffs – affect it much like traditional stocks, putting short-term pressure on prices.

Jung called the recent sell-off an overreaction but advised traders to stay prepared for more volatility. The big question is whether this is just a negotiation tactic or the start of a long economic battle. If tensions continue to rise, crypto markets could face deeper pullbacks.

Can the Crypto Tokens Recover?

For now, XRP and Dogecoin are at the mercy of global market uncertainty. Crypto analyst CasiTrades pointed out that XRP plunged to $1.77 after a weekend liquidation event wiped out key support levels. Currently in a Wave 4 recovery, XRP is testing resistance at $2.49 and $2.67.

A break above $2.67 could spark a strong rally, but if it fails, XRP may drop back to $1.53. CasiTrades believes that once a bottom is confirmed, XRP could surge past its all-time high of $3.80.

Meanwhile, Dogecoin is also showing signs of a possible rebound. It recently bounced off key support near the 200-day simple moving average (SMA) at $0.2265. With the relative strength index (RSI) nearing oversold levels, DOGE could see a short-term recovery if buyers step in.

If the trade war drags on, crypto investors may remain cautious, leading to more extreme price swings. Keep your eyes open!