The cryptocurrency market underwent a massive as February arrived. Indeed, the market observed more than $2.3 billion in liquidations as prices plummeted. There were few who struggled as much as Cardano, as ADA could fall to $0.70 amid a bearish market.
The token certainly wasn’t alone. Although the entire sector was falling in value, XRP, Dogecoin (DOGE), and other altcoins fell as much as 25%. With Cardano plummeting to its lowest level in three months, there are concerns about where the industry will go as a potential trade war keeps brewing in the US.
JUST IN: $2,300,000,000 liquidated from the cryptocurrency market in the past 24 hours.
— Watcher.Guru (@WatcherGuru) February 3, 2025
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Cardano Falls to Pre-US Election Levels as ADA Threatens to Move Further Down
Despite riding so high at the start of the year, things took a turn for the crypto market in the first two days of February. A host of assets plummeted in value, with Bitcoin falling to $95,000. Moreover, as a collective, the market lost more than 12% of its overall market cap.
The drop is tied to US President Donald Trump imposing tariffs on Mexico, Canada, and China this weekend. The move saw a host of cryptocurrencies fall in price, but some were far worse than others. Among the hardest hit was Cardano, with all eyes on whether or not the bearish market will push ADA further to $0.70.
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Over the last 30 days, ADA has fallen more than 28%, according to CoinMarketCap. Yet, more than 15% of those losses have taken place in the last seven days, with Cardano dropping to a $0.76 price. Additionally, its trading volume surged more than 400% in the last 24 hours as market activity persisted.
According to a CoinPedia report, ADA will have to enact a stark reversal to hold out hope of ending its fall. Specifically, the asset will have to end its daily candle above $0.90 to meet the support. If not, another 15% drop to $0.70 is looking like an even greater possibility.
The question is, can the market turn around to help Cardano meet the support? Early Monday, Mexican President Claudia Sheinbaum announced tariffs would be paused for one month. That looks like a slight benefit to various markets. However, it is uncertain yet if that will be enough to mark a turnaround.
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