Major Altcoins, including Ethereum and XRP, have stepped back after a strong upward momentum for the week. The broader crypto market is flashing red today as the best assets face significant resistance after the recent surge.
Data from Encryption This shows that most of the top 10 cryptocurrencies by market capitalization are low. Ethereum dropped by 2% and XRP led losses with a sharp 10% drop. Other Altcoins, such as BNB, Solana, Cardano, Dogecoin and Tron, each recorded losses of over 4%.
Bitcoin, meanwhile, stood out as a rare winner, recording a modest 0.26% increase. Stablecoin linked tokens like USDT and USDC have been stable and unaffected by market slump.
Vincent Liu, Chief Investment Officer at Kronos Research, said Encryption The market pullback was caused by the rewinding of long leveraged positions, which caused a cascade of liquidation.
He added:
“(The market) thinning liquidity, shallow orders and sharp volatility amplifies negative side pressure.”
As a result, the mayor of Altcoin’s market capitalization fell below $1.5 trillion for the first time in a week, according to CoinMarketCap data. Meanwhile, the Altcoin index fell to 34, highlighting the wider market cooldown with the lowest read in weeks.
Still, feelings among traders remain primarily optimistic. Coinalyze data shows that over 70% of the top 10 Altcoin market traders maintain long positions, informing them of their ongoing beliefs about potential rebounds.
Valentin Fournier, Lead Research Analyst at BRN, said:
“Despite the short-term weakness, the underlying structure remains bullish. Demand for businesses continues to increase, and a decrease in FTX repayment burden will mitigate one of the important negative risks of the market.”
$976 million crypto liquidation
The sharp market corrections have caused a huge wave of liquidation. Coinglas reports that positions over $976 million have been settled and affect more than 316,000 traders.
Long-term traders have lost $840 million, those who bet on price increases, betting on the brunt of the damage. The short position accounted for the remaining $135 million loss.
Ethereum traders were hit hardest, with liquidation totaling $200 million. XRP lost $115 million. Other Altcoin traders have seen $177 million wipe out in bulk.
Meanwhile, Bitcoin traders faced a relatively modest loss of $84 million.
The largest single liquidation event occurred at Binance, which included a long position of $2.96 million in the BTC/USDC pair.