Crypto crash: Altcoin price drop after new trade tariffs declare by Trump

Why is crypto down today:

Cardano (ADA) and Solana (SOL) started the new week with continued losses after a sharp decline in the previous days. Both cryptocurrencies dropped more than 15% last week and remained in the red on Monday. The price drop was partly influenced by new trade tariffs announced by former U.S. President Donald Trump, which added pressure to the overall cryptocurrency market.

The selling pressure increased over the weekend as Bitcoin lost a key support level, triggering a market-wide correction. As Bitcoin declined, altcoins like Cardano and Solana followed suit, extending their losses into the new week. This downward movement resulted in significant liquidations for both cryptocurrencies.

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In the past 24 hours alone, over $120 million worth of ADA and SOL was liquidated. Solana was hit the hardest, with more than $84 million in liquidations. These large sell-offs indicate that many traders were forced to close their positions, pushing prices further down.

Such massive liquidations can create fear and uncertainty among investors. When traders see prices falling and liquidations increasing, they may panic and sell their holdings. This fear-driven selling can cause even steeper declines, continuing the bearish trend in the market.

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The technical outlook for both ADA and SOL remains weak, with no clear signs of recovery yet. If selling pressure continues, both cryptocurrencies may see further declines in the coming days. However, investors will be closely watching for any signs of stabilization or reversal in the broader crypto market.