Crypto altcoin prices plummet as downward trend persists with consecutive monthly losses – Sherwood News
The cryptocurrency market continues to be engulfed in a prolonged slump, with popular altcoins such as Ethereum, XRP, Solana, and Dogecoin struggling to break free from their losing streaks. Ethereum, in particular, has seen a decline of over 8% in the past month, marking its fifth consecutive month of negative returns. XRP, Solana, and Dogecoin have also experienced drops ranging between 5% and 7%, putting them on track to record four straight monthly red candles according to data from TradingView.
The grim outlook is further highlighted by market-implied probabilities derived from event contracts, indicating a bearish sentiment among investors. The likelihood of Ethereum climbing above $3,500 this month is just 2%, with similar low probabilities for XRP, Dogecoin, and Solana reaching their respective price targets. These figures underscore the challenges faced by altcoins in the current market conditions.
Sean Dawson, head of research at cryptocurrency options platform Derive.xyz, expressed his concerns about the ongoing market turmoil, attributing it to macroeconomic factors and fears surrounding inflated tech sectors. The correlation between Bitcoin and equities has also added to market uncertainties, with the recent appointment of Kevin Warsh as the potential new chairman of the Federal Reserve seen as a hawkish move by many.
Ian Unsworth, co-founder of Kairos Research, highlighted the significance of the CLARITY Act in determining the future trajectory of the cryptocurrency industry. As crypto becomes more intertwined with traditional finance, the implementation of this bill is crucial for shaping the next chapter of the market. However, while the development of the CLARITY Act is a positive step, Dawson believes that it may not have an immediate impact on prices in the short term.
Looking ahead, both Dawson and Unsworth anticipate further challenges for altcoins in the coming months. Dawson predicts that the pain will persist well into February, with continued uncertainty surrounding market conditions and regulatory developments. Despite the potential for a healthy rebound contingent on factors such as the CLARITY Act, the current environment remains challenging for altcoins as they struggle to reverse their downward trends.
In conclusion, the cryptocurrency market faces continued pressure as altcoins grapple with a prolonged downturn. With red monthly candles stacking up for popular coins like Ethereum, XRP, Solana, and Dogecoin, investors are bracing for further challenges ahead. The interplay of macroeconomic factors, regulatory developments, and market sentiment will continue to dictate the trajectory of altcoins in the weeks and months to come.
