Date: Tue, March 04, 2025 | 03:20 AM GMT
The cryptocurrency market faced another sharp downturn as Bitcoin (BTC) dropped by over 10% following U.S. President Donald Trump’s announcement of a 25% tariff on goods from Mexico and Canada. This unexpected move triggered a major sell-off, wiping out the gains from Sunday’s “crypto strategic reserve” pump. Over the past 24 hours, the market witnessed massive liquidations exceeding $1 billion, as reported by Coinglass.
Among the hardest-hit assets were Cardano (ADA) and XRP (XRP), both of which saw a significant boost on Sunday after being included in the U.S. crypto strategic reserve. However, they have now erased most of those gains, plunging by 25% and 17%, respectively.
Cardano (ADA)
On the daily chart, ADA has formed a symmetrical triangle pattern and the ongoing sell-off has dragged ADA from its high of $1.17 down to around $0.80. Despite this, the structure of the triangle pattern suggests there is still enough room for price movement before a breakout or breakdown occurs.
If ADA manages to reclaim the 100-day moving average, the possibility of a quick recovery increases. The current support zone of $0.74 to $0.83 is crucial for maintaining the positive structure. A successful move above the 100 MA could lead to a strong upward push toward the upper resistance levels around $1.0 to $1.20.
However, if the support level fails to hold, ADA could experience further downside, potentially retesting lower trendline areas before a decisive move.
XRP (XRP)
XRP has followed a similar price action to ADA, forming a symmetrical triangle pattern on the daily chart. The recent drop brought XRP down from $2.95 to its current support zone at $2.28.
If XRP manages to reclaim the 100-day moving average, it could see a strong push toward the $2.80 to $3.50 range, with buyers regaining control of momentum. However, if the support level at $2.28 breaks, there is a risk of XRP sliding toward the support trendline of triangle.
Final Thoughts
While the recent market downturn has erased the short-term gains for ADA and XRP, both cryptocurrencies remain in a consolidation phase within their symmetrical triangle patterns. The coming sessions will be key in deciding whether these assets can break out and resume an uptrend or continue consolidating before a more significant move.
For now, traders and investors should closely monitor price action around the support and resistance areas, as a breakout in either direction could define the next major price movement.
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