The market phase is quite negative and harsh.

A series of altcoins have dropped in price by 20–60% in just 24 hours, typical examples include:

ACT/USDT: down by -61.89%

DF/USDT: -37.82%

LEVER/USDT: -36.57%

MASK/USDT: -31.88%

And many other coins have also dropped by 20–30%. This is a sign of a massive crash.

The main reasons that can explain this phenomenon:

1. Binance adjusts the leverage limit for numerous altcoins

Binance has just announced the leverage limit and maximum position limit for many altcoin pairs, including $ACT, $LEVER, $DF, $TROY… This forces accounts with large open positions to either reduce or get liquidated (auto reduce).

When high-leverage positions are force closed or auto-deleveraged, it creates immense selling pressure in a short period, causing prices to plummet.

The enforcement of limits just hours after the announcement leaves traders unable to react in time.

2. Domino effect from mass liquidations (cascade liquidation)

3. Fear and panic among altcoin investors

💡 4. High leverage