The cryptocurrency market has experienced a significant downturn, with major digital assets posting notable losses. Dogecoin (DOGE) and Cardano (ADA) have been among the biggest losers, with DOGE down 12% and ADA dropping 14.7%. Solana (SOL) also saw a decline of 10%, 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 has decreased by 5% in the past 24 hours, falling to $3.2 trillion.
Dogecoin saw an increase in network activity, with 60.9 billion tokens transacted within a day and a 41.2% rise in large transactions. However, this activity failed to support its price, which currently trades at $0.3756, down 9.7%. Trading volumes for DOGE rose by 23.7%, but selling pressure has 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 dropped from $347.8 billion to $228.8 billion within a day, with trading volume increasing by 43.2% as sell-offs intensified.
The broader market downturn has resulted in extensive liquidations. Data from CoinGlass revealed that over $691 million in crypto positions were liquidated, with Bitcoin accounting for $150 million of these losses. The largest single liquidation involved a Binance trader, losing $4.67 million on a long position. In total, more than 180,000 accounts were affected by the liquidations.
QCP Capital attributed the declines to excessive leverage in the market, describing the situation as a necessary correction. Bitcoin’s price drop coincided with outflows from spot ETFs, totaling $435 million on Monday and ending a streak of net inflows. Analysts suggest that the market could stabilize as leverage resets.
Upcoming economic developments could further influence the market. The Federal Reserve’s meeting minutes are expected to offer clues about future monetary policy, following a recent interest rate cut. Additionally, PCE data due before Thanksgiving may indicate rising inflation, which could impact decisions on rate adjustments in December.
Despite the setbacks, some remain optimistic. Raoul Pal of Real Vision suggested that Dogecoin might outperform Bitcoin, while analyst Ali Martinez forecasted DOGE’s potential breakout to $0.82. However, immediate concerns about market corrections and leverage overheating dominate the outlook.
