Dogecoin and Solana Dominate Double-Digit Losses Amid Cryptocurrency Market Downturn
The cryptocurrency market has had a rough day, with many major digital assets taking a hit. Dogecoin (DOGE) and Cardano (ADA) were hit hard, with DOGE dropping 12% and ADA falling 14.7%. Solana (SOL) also saw a decline of 10%, trading at $227, while XRP fell 10.7% to $1.33. Even big players like Bitcoin (BTC) and Ethereum (ETH) weren’t spared, losing 6.1% and 4.5%, respectively. Overall, the total market capitalization of cryptocurrencies fell by 5% in the past 24 hours, down to $3.2 trillion.
Despite some increased network activity, Dogecoin’s price has continued to drop, currently sitting at $0.3756, down 9.7%. On the bright side, the amount of DOGE being traded has gone up by 23.7%, but unfortunately, selling pressure has still taken its toll.
Solana (SOL) also faced a significant decline, dropping to $230. Market corrections and technical indicators pointing to overbought conditions have influenced this drop. The total market capitalization of Solana-based tokens decreased from $347.8 billion to $228.8 billion in just one day, with trading volume rising by 43.2% as sell-offs ramped up.
The market downturn has led to a lot of liquidations. Over $691 million in crypto positions were liquidated, with Bitcoin accounting for $150 million of those losses. The biggest single liquidation involved a Binance trader who lost $4.67 million on a long position. In total, more than 180,000 accounts were impacted by these liquidations.
Some experts attribute these declines to excessive leverage in the market, calling it a necessary correction. As Bitcoin’s price dropped, there were outflows from spot ETFs totaling $435 million on Monday, breaking a streak of net inflows. Analysts believe the market could stabilize once leverage resets.
There are important economic developments on the horizon that could further influence the market. The Federal Reserve’s meeting minutes will provide insight into future monetary policy, following a recent interest rate cut. Additionally, PCE data expected before Thanksgiving may show rising inflation, which could impact decisions on rate adjustments in December.
Despite the challenges, some remain optimistic. Raoul Pal of Real Vision suggested that Dogecoin could outperform Bitcoin, while analyst Ali Martinez predicted DOGE could potentially reach $0.82. However, for now, concerns about market corrections and high leverage are top of mind.
