Dogecoin, Solana Post Double-Digit Losses as Crypto Market Momentum Halts

The crypto market is having a rough week, with all top 50 cryptocurrencies except stablecoins posting losses overnight.

Among the top 10 cryptocurrencies by market capitalization, Dogecoin (DOGE) and Cardano (ADA) suffered the biggest successes, while Solana (GROUND) and XRP also fell by double digits over the past 24 hours, according to CoinGecko data.

Over the past day, Dogecoin fell 12% to $0.37 while Cardano fell 14.7% to $0.90. Solana fell 10% to $227, while XRP fell 10.7% to $1.33.

Bitcoin (BTC) was not spared either, falling 6.1% to $92,362, while Ethereum was down 4.5% to $3,324.

“The market has become extremely overbought since the election, with excessive leverage making a pause inevitable,” QCP Capital said in its latest issue.

Bitcoin’s decline, in particular, would have coincided with the end of a five-day streak of net inflows from spot ETFs, QCP Capital noted. As of Monday, outflows totaled $435 million, according to data from Farside Investors.

Liquidation data from CoinGlass shows that more than $691 million was wiped out across more than 180,000 positions. Bitcoin traders felt the most pain with around $150 million in long liquidations, but the real drama came from a single whale on Binance who lost $4.67 million in one fell swoop when his position long was wiped out.

What’s next: FOMC minutes, PCE data

Two key macro indicators follow one another from Tuesday evening. QCP Capital notes that concerns about downside risks “may intensify” as these risks become publicized.

First, the minutes of the November Fed meeting. The Fed’s latest meeting ended with a rate cut that everyone expected, even as it changed the way it talks about inflation and its overall goals. Powell kept things relatively subdued in his comments, essentially saying that the economy was doing well but that they would remain flexible to future developments.

Next up is the pre-Thanksgiving PCE data drop due Wednesday, which appears to show a slight acceleration in inflation based on other recent numbers. Traders are somewhat divided on whether another rate cut will happen by December, with just over half betting it will happen – although, as usual, it will depend on what we are told economic figures.

At least for now, general opinion views last week’s momentary pause as a healthy correction rather than the start of a longer downtrend.