BNB, Solana, and Cardano Plunge as Crypto Market Liquidations Surge Past $2 Billion

The cryptocurrency market turned sharply lower this week as a wave of liquidations rattled traders and erased billions in speculative positions. Leading altcoins — BNB, Solana (SOL), and Cardano (ADA) — each suffered double-digit losses, dragging the total crypto market capitalization below $4.1 trillion.

According to data from Coinglass, more than $2.05 billion in leveraged positions were liquidated in the past 48 hours, marking one of the largest single-day liquidation events of 2025.

Altcoins Lead the Downturn

Among major cryptocurrencies, BNB (Binance Coin) was one of the hardest hit, dropping over 13% to around $1,124 after briefly setting a new all-time high near $1,300 earlier this month. Analysts attribute the pullback to profit-taking, rising U.S. Treasury yields, and concerns over Binance’s ongoing discussions with regulators regarding compliance oversight.

Solana (SOL) fell 11% to $189, extending a three-day decline that erased much of its recent ETF-driven gains. Despite Solana’s strong fundamentals — including record on-chain stablecoin flows and an expanding DeFi ecosystem — the token has become a favorite among leveraged traders, amplifying downside pressure during market stress.

Meanwhile, Cardano (ADA) plunged nearly 14%, slipping below the $0.68 support level, as investors rotated out of proof-of-stake tokens into more liquid large-caps like Bitcoin (BTC) and Ethereum (ETH).

Market-Wide Liquidations Accelerate

The sell-off was exacerbated by mass long liquidations, particularly in altcoin perpetual futures, as traders bet heavily on continued upside after September’s rally.
Over 320,000 traders were liquidated in the past day alone, with the single largest liquidation order — worth $21.7 million — recorded on Binance’s ETH-USD pair.

“Leverage built up rapidly after last week’s ETF inflows, and this correction was a healthy but painful flush-out,” said Rachael Lucas, a market strategist at BTC Markets. “What we’re seeing now is a reset in funding rates and risk appetite before the next leg up.”

Funding rates across major exchanges have since flipped neutral to negative — a sign that over-leveraged long positions have been largely unwound.

Macroeconomic Pressure Adds Fuel

The crypto market’s downturn coincides with a broader risk-off move in global markets.
Renewed geopolitical tensions and hawkish Federal Reserve commentary have strengthened the U.S. dollar, prompting outflows from risk assets like tech stocks and crypto.

The Federal Reserve’s upcoming meeting minutes and next week’s consumer inflation data could further influence short-term sentiment. Traders are watching for clues on whether policymakers will proceed with rate cuts in November or maintain a restrictive stance into 2026.

Analysts See Opportunity Amid Panic

Despite the steep declines, analysts remain optimistic about medium-term prospects, arguing that market fundamentals remain strong — particularly in blockchain adoption, ETF demand, and institutional participation.

“Corrections like these shake out leveraged traders but don’t change the underlying growth trajectory,” said Tom Dunleavy, chief investment officer at MV Capital. “BNB, Solana, and Cardano still lead innovation in their respective ecosystems.”

Historical data supports this view: in prior bull cycles, similar liquidation events often preceded sharp rebounds once market leverage reset and spot buying resumed.

BNB, SOL, ADA Technical Outlook

• BNB (BNB/USD): Immediate support sits near $1,085, with deeper retracement possible toward $1,000. A sustained move above $1,200 could re-ignite bullish momentum toward record highs.
• Solana (SOL/USD): Key support levels lie at $180 and $165; resistance emerges at $205. Analysts note that a weekly close above $195 could validate a renewed uptrend.
• Cardano (ADA/USD): Short-term structure remains weak below $0.70. Bulls will need a decisive reclaim of the $0.75–$0.80 zone to restore momentum.

Liquidation Events as Bull Market Tests

While painful, liquidation cascades are not uncommon during major crypto rallies. They tend to occur when funding rates climb excessively and traders chase momentum with high leverage. Once those positions unwind, the market often consolidates before staging a renewed advance.

As Bitcoin (BTC) stabilizes near the $111,000–$113,000 range, many analysts see the current correction as a mid-cycle flush rather than the start of a prolonged downturn.

“The market was overheated, and this kind of reset is necessary to build the next leg higher,” said Michaël van de Poppe, founder of MN Trading. “If Bitcoin holds above $108K, altcoins like BNB, Solana, and Cardano could rebound strongly in Q4.”

Bottom Line

The latest liquidation wave underscores crypto’s inherent volatility — and the risks of over-leverage during euphoric rallies.
Still, institutional adoption, expanding on-chain activity, and resilient spot demand continue to support a long-term bullish case for digital assets.

BNB, Solana, and Cardano may remain under pressure in the short term, but if Bitcoin consolidates above key supports, the stage could soon be set for another powerful altcoin recovery.