The cryptocurrency market has seen a significant slowdown, with major digital assets posting notable losses.
The cryptocurrency market has seen a significant slowdown, with major digital assets posting notable losses. Dogecoin (DOGE) and Cardano (ADA) were among the biggest losers, with DOGE down 12% and ADA down 14.7%. Solana (SOL) also saw a 10% decline, trading at $227, while XRP fell 10.7% to $1.33. Even Bitcoin (BTC) and Ethereum (ETH) were not spared, losing 6.1% and 4.5% respectively. Overall, the market capitalization of cryptocurrencies declined by 5% over the past 24 hours, falling to $3.2 trillion.
Dogecoin saw an increase in network activity, with 60.9 billion tokens traded in one day and a 41.2% increase in large transactions. However, this activity failed to support its price, which is currently trading at $0.3756, down 9.7%. Trading volumes for DOGE increased by 23.7%, but selling pressure overshadowed any signs of recovery.
Solana (SOL) also faced a sharp decline. Trading at $230, the token’s price has been affected by market-wide corrections and technical indicators suggesting overbought conditions. The total market capitalization of Solana-based tokens increased from $347.8 billion to $228.8 billion in one day, with trading volume increasing by 43.2% as sales intensified.
QCP Capital attributed these declines to excessive leverage in the market, describing the situation as a necessary correction. The decline in Bitcoin’s price coincided with outflows from spot ETFs, totaling $435 million on Monday and ending a string of net inflows. Analysts suggest the market could stabilize as leverage resets.
Upcoming economic developments may further influence the market. Federal Reserve meeting minutes are expected to provide clues about future monetary policy, following a recent cut in interest rates. Additionally, PCE data expected before Thanksgiving could indicate rising inflation, which could impact rate adjustment decisions in December.
Despite the setbacks, some remain optimistic. Raoul Pal of Real Vision suggested that Dogecoin could outperform Bitcoin, while analyst Ali Martinez predicted a potential DOGE breakout to $0.82. However, immediate concerns about market corrections and overheating debt dominate the outlook.
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