XRP, DOGE, and SOL Decline Amid Concerns Over Altcoin Season
Bitcoin (BTC) experienced a modest decline, while major cryptocurrencies faced significant drops, raising concerns about the longevity of altcoin season.
- XRP, dogecoin (DOGE), and Solana's SOL each fell around 5% in the last 24 hours.
- XRP and DOGE dropped approximately 18% from Wednesday highs; SOL decreased by 12%.
- The CoinDesk 80 Index lost 10% from its weekly peak.
- BTC was trading at $116,000, over 3% lower than mid-week's peak of $120,000.
- Ethereum (ETH) was down 4% from its weekly high but showed steady accumulation by crypto treasury firms.
Market Analysis
- The recent sell-off followed strong capital rotation into smaller tokens, previously indicating an altcoin season.
- CoinGlass' Altcoin Season Index declined to 41 from 59 on Monday, suggesting cooling market enthusiasm.
- Despite the pullback, the altcoin market has nearly doubled in value since April.
- Excessive leverage on altcoin positions contributed to this week's declines.
- The Altcoin Open-Interest Dominance metric reached 1.6, signaling potential market shakeouts.
- Traders should monitor Bitcoin Dominance; it has fallen below the 200-day moving average for the first time since January 2025.
- A sustained move below this level could indicate prolonged altcoin outperformance.