The cryptocurrency market has experienced a significant downturn, with major digital assets facing notable losses in a broad market correction. Among the hardest hit were Dogecoin (DOGE) and Cardano (ADA), which saw declines of 12% and 14.7%, respectively. Solana (SOL) also took a sharp hit, falling 10% to $227, while XRP dropped 10.7%, trading at $1.33. Even market leaders Bitcoin (BTC) and Ethereum (ETH) were not immune, with both losing 6.1% and 4.5% of their value, respectively. The market capitalization of all cryptocurrencies collectively dropped by 5%, falling to $3.2 trillion over the past 24 hours.
Despite a significant surge in network activity, Dogecoin failed to maintain any upward momentum. A total of 60.9 billion DOGE tokens were transacted in a single day, with large transactions increasing by 41.2%. However, this increased activity was overshadowed by persistent selling pressure, resulting in a 9.7% drop in the price of Dogecoin, which now stands at $0.3756. While DOGE’s trading volumes saw a rise of 23.7%, these gains were not enough to counter the broader market trend, highlighting the difficulties many altcoins face during market corrections.
Solana, one of the top-performing cryptocurrencies of 2023, was also caught in the sell-off, with the token’s price dropping to $227, a 10% decline. Solana’s market capitalization plunged from $347.8 billion to $228.8 billion in just one day, and its trading volume surged by 43.2%, driven by intensified sell-offs. Technical indicators also suggested that Solana had entered overbought territory, adding pressure to its price. The decline underscores the broader correction taking place in the cryptocurrency market, which is impacting a wide range of digital assets.
The current market correction has led to extensive liquidations across the cryptocurrency space. According to data from CoinGlass, more than $691 million worth of positions were liquidated in the last 24 hours, with Bitcoin accounting for $150 million of these losses. The largest single liquidation occurred on Binance, where a trader lost $4.67 million on a long position. Over 180,000 accounts were affected by the widespread liquidations, contributing to the volatility in the market.
QCP Capital attributed much of the decline to excessive leverage in the market, calling the correction a necessary adjustment. Bitcoin’s price drop coincided with significant outflows from spot exchange-traded funds (ETFs), with $435 million exiting the market on Monday. Analysts believe the market could stabilize as leveraged positions are liquidated and the market works through the current correction.
Market participants are closely watching upcoming economic developments, particularly the release of the Federal Reserve’s meeting minutes, which may provide insight into future monetary policy. Following a recent interest rate cut, investors are awaiting clues about whether the Fed will make further adjustments, especially in light of the rising inflation concerns. Additionally, the release of the Personal Consumption Expenditures (PCE) data before Thanksgiving could provide further context for the Fed’s decision-making, potentially influencing market sentiment and cryptocurrency prices in the coming weeks.
Despite the challenges facing the crypto market, some analysts remain optimistic. Raoul Pal, founder of Real Vision, suggested that Dogecoin could outperform Bitcoin in the near future, citing the token’s potential for significant growth. Analyst Ali Martinez also forecasted a potential breakout for Dogecoin, predicting that the price could rise to $0.82. However, the immediate outlook remains cautious, as the market is still grappling with the effects of leverage overheating and ongoing corrections.
As the cryptocurrency market continues to experience volatility, many investors are adopting a wait-and-see approach, looking for signs of stabilization before making significant moves. While the market faces short-term challenges, long-term prospects remain optimistic for many in the crypto space, particularly as the demand for digital assets and blockchain technology continues to grow.
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