The cryptocurrency market experienced a significant downturn, with Cardano (ADA) among the most affected assets. On February 3, 2025, ADA's price dipped below $0.70
The cryptocurrency market experienced a significant downturn on Friday, with several digital assets, including Cardano (ADA), facing substantial losses. According to recent data, ADA’s price dipped below the $0.70 mark on February 3, 2025, triggering a massive sell-off in the market.
Despite the sharp decline in ADA’s price, trading volume surged to unprecedented levels, indicating heightened activity among traders. ADA’s price faced difficulties in finding stability, dropping by over 20% within 24 hours. The cryptocurrency slid to a low of $0.5648 before attempting a slight recovery, reaching a price of approximately $0.60 by the evening.
However, ADA’s price initially dropped below the $0.70 threshold on Thursday, February 2. This level served as a crucial support zone that ADA had managed to hold above for the past few months. But as the sell-off gained momentum on Friday morning, ADA’s price quickly fell through this support level, leading to a sharp decline.
This sell-off was not limited to ADA, as the broader crypto market also experienced a downturn. A major factor contributing to the sell-off was the tariff war in North America, which put pressure on stock markets, leading to the S&P 500 dropping by 0.7%. The彙集果冻币值 also fell sharply, putting digital assets under the spotlight.
Cardano (ADA) saw a different picture, with the cryptocurrency’s trading volume spiking astronomically. Recent data showed a surge of over 428%, reaching approximately $3.77 billion in 24-hour trading volume. ADA’s price typically moved in tandem with the asset’s trading volume, with higher volume usually indicating either a buying spree or an aggressive sell-off.
In this case, most traders appeared to be offloading their ADA holdings, contributing to the steep drop in price. The sell-off was further highlighted by the liquidation figures, which showed over $36 million in ADA trades being liquidated within a day.
This sell-off was largely driven by traders who had opened long positions with high leverage, magnifying their potential losses during the downturn. Of the total liquidated trades, long-position traders absorbed the brunt of the impact, with more than $31 million in long positions being wiped out. This high-risk trading strategy leaves traders vulnerable to substantial losses in volatile market conditions.
