Altcoin market plunges $50B as selling accelerates; ETH, SOL, XRP lead losses
The altcoin market experienced a sharp drawdown as total crypto market capitalization excluding Bitcoin fell to about $1.2 trillion, a roughly $50 billion (≈4%) drop in the latest daily candle. Elevated trading volume near $147 billion indicates active risk-selling rather than low liquidity. Major large-cap altcoins posted steep weekly losses: Ethereum (ETH) slipped below $3,000 (~7% daily, ~7% weekly), Solana (SOL) fell to ~$127 (~11% weekly), XRP declined over 11% weekly, while Dogecoin and Cardano each lost ~14% or more. BNB and Tron also weakened; Monero recorded one of the largest weekly drops, exceeding 25%. Market structure deteriorated after failure to reclaim the $1.3 trillion area; lower highs and a daily RSI below 40 point to growing downside momentum. Volume spikes on red candles suggest distribution and capital rotation out of higher-beta altcoins into safer assets. Although Bitcoin was excluded from the altcoin-cap metric, BTC sliding below $90,000 appears to have amplified the sell-off by flushing leverage and reducing risk appetite. Short-term outlook: altcoins remain vulnerable to further downside until Bitcoin stabilizes and broader market confidence returns. Key trader takeaways: increased volatility, preference for risk reduction, watch Bitcoin price action, monitor liquidity and RSI for potential capitulation or a relief bounce.
Bearish
The report documents a clear risk-off episode: a $50B decline in altcoin market cap excluding Bitcoin, elevated trading volume during sell candles, lower highs in market structure, and daily RSI below 40. Multiple large-cap tokens posted double-digit weekly losses and one privacy coin (XMR) declined over 25%, indicating broad-based distribution rather than isolated weakness. Bitcoin’s dip below $90,000 likely amplified the move by triggering deleveraging. Historically, similar patterns — altcoin underperformance, falling RSI, and volume-led red candles during BTC weakness — precede further downside or prolonged consolidation (e.g., post-leverage flushes in 2018 and 2022). For traders, the near-term implication is higher volatility and a bias to reduce exposure to high-beta altcoins until BTC stabilizes and on-chain/liquidity metrics improve. Tactical responses include tightening stops, reducing position sizes in altcoins, hedging with BTC or stablecoins, and watching RSI, volume, and the $1.3T altcoin-cap level for signs of structural recovery.