Market Analysis: Decline of Altcoins ADA and SOL Amid Tariff Concerns
Cardano (ADA) and Solana (SOL) are experiencing significant drops of over 15%, attributing decline to geopolitical factors including President Trump’s tariffs. Approximately $120 million was liquidated from ADA and SOL recently. Technical and on-chain metrics indicate ongoing bearish trends for both altcoins, perpetuating concerns among investors.
Altcoins Cardano (ADA) and Solana (SOL) have seen significant price declines, with both dropping over 15% last week and further losses reported on Monday. These downturns can be partially attributed to the recent tariffs announced by United States President Donald Trump, impacting major trading partners and creating a ripple effect in the cryptocurrency market. The total liquidation for both altcoins reached approximately $120 million in just 24 hours, highlighting the magnitude of the market correction.
CoinGlass data indicates that ADA and SOL are heavily influenced by broader market trends; as Bitcoin fell below critical support levels, these altcoins followed suit. Broken down, Solana accounted for over $84 million in liquidations, prompting fears among investors and further amplifying the selling pressure in the market. The current technical analysis suggests both ADA and SOL may continue to experience bearish momentum, translating into extended price corrections.
On-chain metrics support a bearish sentiment for Cardano and Solana. According to the OI-Weighted Funding Rate data from CoinGlass, more traders are betting against the altcoins rather than anticipating price increases. Specific rates for ADA and SOL stand at -0.0058% and -0.0017%, respectively, underscoring the prevailing negative outlook and suggesting continued pressure on their prices.
Cardano’s price remains below its resistance around $1.18, dropping to approximately $0.63, which constitutes a nearly 22% decline. Analysts propose that if this negative trend persists, it might test support levels near $0.44. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reveal bearish indicators, reinforcing concerns about Cardano’s momentum.
Similarly, Solana has faced challenges, declining to around $190.61. If downward momentum continues, it may test prior lows at $168.88, with the potential to fall further to a support level at $120.91. The RSI for Solana also indicates bearish trends, while the MACD supports this outlook, leaving investors cautious about further declines in Solana’s value.
The altcoin market, notably Cardano (ADA) and Solana (SOL), is experiencing significant volatility influenced by external factors, notably political and economic decisions, including tariffs announced by President Trump. These developments have instigated a broader sense of fear within the cryptocurrency space, affecting investor sentiment across various digital assets. Historical correlations between Bitcoin performance and altcoin reactions suggest that any shifts in Bitcoin often trigger similar movements in altcoins like ADA and SOL.
In summary, both Cardano and Solana are facing considerable price declines alongside the broader cryptocurrency market. The recent influence of geopolitical scenarios and the resulting liquidations have compounded bearish sentiments, highlighting the potential for continued downward trends. Investors remain cautious with on-chain metrics indicating a significant inclination toward short positions, suggesting ongoing pressure for these altcoins in the near future.
Original Source: www.fxstreet.com
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