Dogecoin and Solana Lead Double-Digit Losses in Crypto Market Downturn
The cryptocurrency market has seen a bit of a rough patch, with various digital assets experiencing significant losses. Dogecoin (DOGE) and Cardano (ADA) are among the top losers, with DOGE dropping by 12% and ADA by 14.7%. Solana (SOL) also took a hit, falling by 10% and trading at $227, while XRP decreased by 10.7% to $1.33. Even the big players, Bitcoin (BTC) and Ethereum (ETH), saw declines of 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.
Dogecoin witnessed an increase in network activity, with 60.9 billion tokens transacted in a day and a 41.2% rise in large transactions. However, despite this activity, its price has dipped to $0.3756, down by 9.7%. Trading volumes for DOGE have gone up by 23.7%, but the selling pressure seems to be overpowering any signs of recovery.
Solana (SOL) also experienced a sharp decline, trading at $230. The token’s price was affected by overall market corrections and technical signals indicating overbought conditions. The total market capitalization of Solana-based tokens went down from $347.8 billion to $228.8 billion in just one day, with trading volume increasing by 43.2% due to intensified sell-offs.
The downturn in the market has led to a significant amount of liquidations. Data from CoinGlass showed that over $691 million in crypto positions were liquidated, with Bitcoin accounting for $150 million of those losses. The largest 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.
QCP Capital attributed the declines to an excessive amount of leverage in the market, describing the situation as a necessary correction. Bitcoin’s price drop coincided with outflows from spot ETFs, totaling $435 million on Monday and putting an end to a streak of net inflows. Analysts believe that the market may stabilize as leverage resets.
Future economic events could play a significant role in influencing the market. The Federal Reserve’s meeting minutes are expected to provide insights into future monetary policy decisions after a recent interest rate cut. Additionally, upcoming PCE data before Thanksgiving may indicate a rise in inflation, potentially impacting decisions on rate adjustments in December.
Despite the challenges, there are still some optimists in the mix. Real Vision’s Raoul Pal suggested that Dogecoin could potentially outperform Bitcoin, while analyst Ali Martinez predicted a potential breakout for DOGE up to $0.82. However, the immediate focus remains on market corrections and leverage overheating.
Remember, this article is meant for informational purposes only. It’s crucial to conduct thorough research and analysis before making any financial decisions related to the products or services mentioned. Always be cautious and consider seeking advice from a financial professional.
