Cardano faces 30% drop as crypto liquidations top $1 billion
- Cardano (ADA) down 13% as price hits $0.55.
- US-China trade tensions under Trump drive market downturn.
- ADA faces a 30% drop if the $0.51 support fails.
The global cryptocurrency market is undergoing a sharp correction as macroeconomic fears intensify, with more than $1 billion in crypto liquidations occurring in the past 24 hours alone.
Bitcoin has slumped below $77,000, erasing over 10% from its recent peak of nearly $90,000.
Altcoins are showing even greater volatility, with Cardano (ADA) seeing a 13% decline that has brought its price to $0.55.
Source: CoinMarketCap
Market analysts say this downturn is largely being fuelled by escalating US-China trade tensions and growing concerns over a US recession under President Donald Trump’s administration.
ADA price nears breakdown
Cardano is currently at risk of a technical breakdown, according to analysts monitoring the price structure.
The asset is trading just above the key support level of $0.51, which has already been tested during the latest round of selling.
A breach below this level could push the price as low as $0.35—a nearly 30% fall from current levels, revisiting the lows seen in October and November.
Chart patterns suggest that ADA has been following a descending triangle formation, which typically signals further downside.
The absence of any meaningful rally from recent lows adds weight to this bearish setup.
Until the token breaks past the $0.673 resistance with a decisive five-wave move, technical indicators will likely remain tilted in favour of sellers.
Altcoins extend losses
Cardano is not the only cryptocurrency under pressure. Ethereum, Solana, Dogecoin, and XRP are all experiencing losses greater than Bitcoin’s, reflecting widespread anxiety in the digital assets market.
The trigger appears to be a mix of deteriorating macroeconomic sentiment and policy moves in the US.
Trump’s latest tariff threats against China have reignited fears of a global trade war.
Coupled with concerns about inflation and slower economic growth, this has led to risk-off sentiment across equity and crypto markets alike.
Ending diagonal pattern
On the lower time frame, ADA’s chart reveals a double-bottom pattern, typically seen as a bullish reversal signal.
However, in this case, analysts argue that the setup is weak due to the lack of volume and follow-through.
Instead, the price action more closely resembles an “ending diagonal” formation, which often marks the final leg of a corrective move before another downward wave begins.
If the current structure completes the third wave of this diagonal, Cardano could see additional selling pressure, potentially extending the correction before any signs of a sustained rebound appear.
This would align with the broader market narrative, which suggests caution as traders navigate an increasingly volatile environment.
Weak bullish momentum
Another challenge for ADA has been its inability to sustain upward momentum following brief rallies.
The token has failed to reclaim the $0.673 level, which was the last major swing high.
Without a strong move above this price point—ideally supported by a five-wave bullish structure—market participants remain hesitant to enter new long positions.
The sentiment around Cardano, like much of the altcoin market, remains fragile.
Until clearer macroeconomic signals emerge or Bitcoin itself stabilises above key resistance levels, altcoins like ADA may continue to trade defensively in the weeks ahead.
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