The cryptocurrency market has witnessed a dramatic shift, with the altcoin sector increasingly facing significant pressure. Over the past 24 hours, the total crypto market capitalization, excluding Bitcoin, dropped to approximately $1.2 trillion, marking a daily decline of $50 billion—more than 4% according to recent market data.
Altcoin Sell-Off Intensifies
Altcoins, including Ethereum, Solana, and XRP, saw sharp declines, contributing to the broader market downturn. Notably, Ethereum slipped below the $3,000 mark, posting a 7% loss on the day and a similar drop over the past week. Solana followed suit, falling to $127 and losing 11% within seven days. XRP and Dogecoin also underperformed, experiencing weekly losses exceeding 11%, while BNB and Tron fell moderately but significantly.
One of the steepest declines was recorded by privacy-focused Monero (XMR), with losses surpassing 25% in just a week. This development signals an all-encompassing contraction across both high-growth and well-established altcoins alike.
Technical Analysis Signals Risk-Off Behavior
A look at the technical charts reveals critical information about the ongoing sell-off. The total market cap, excluding Bitcoin, failed to reclaim the $1.3 trillion mark earlier this month, instead showing continued structural weakness and printing consecutive lower highs. Momentum indicators, such as the daily Relative Strength Index (RSI), fell below 40, reflecting weakening buyer interest and heightened distribution.
The surging trading volumes on red candles highlight risk-off sentiment, as traders and investors pull capital out of altcoins in favor of Bitcoin or other safer assets. Historically, similar market behavior has been observed during sharp Bitcoin declines, which further dampen confidence in high-beta altcoins.
Crypto Trends: Looking Ahead
Bitcoin’s slide below $90,000 amplified the sell-off in altcoins. Additionally, with tightened liquidity and no immediate recovery in sight, the altcoin sector is bracing for more volatility in the short term. Traders appear to be preparing for deeper downside as macroeconomic conditions and market sentiments shift toward caution.
Recommended Product for Crypto Enthusiasts
If you’re a cryptocurrency trader or enthusiast, staying on top of market movements is essential. The Ledger Nano X Hardware Wallet is a must-have for securely storing your crypto assets during volatile market swings. This state-of-the-art wallet ensures your funds remain safe while giving you peace of mind in uncertain times.
For more updates on the evolving crypto market, ensure you keep a watchful eye on daily trends and market metrics to make informed decisions.
