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Significant altcoins, such as Ethereum and XRP, have experienced a retreat after a week of robust upward movement. The overall cryptocurrency market is showing red today as leading assets encounter considerable resistance following their recent rise.
According to data from CryptoSlate, the majority of the top 10 cryptocurrencies by market capitalization are trading lower. Ethereum has declined by 2%, while XRP has led the losses with a notable 10% drop. Other altcoins, including BNB, Solana, Cardano, Dogecoin, and Tron, each reported losses exceeding 4%.
In contrast, Bitcoin emerged as a rare gainer, recording a slight increase of 0.26%. Tokens linked to stablecoins like USDT and USDC remained stable and unaffected by the market decline.
Vincent Liu, Chief Investment Officer at Kronos Research, informed CryptoSlate that the market pullback was driven by the unwinding of leveraged long positions, which initiated a series of liquidations.
He further stated:
“[The market’s] thinning liquidity, shallow order books, and sharp volatility are amplifying the downside pressure.”
Consequently, the total altcoin market capitalization fell below $1.5 trillion for the first time in a week, as per CoinMarketCap data. Additionally, the Altcoin Index dropped to 34, marking its lowest level in several weeks, indicating a broader market cooldown.
Altcoin Index Chart (Source: CoinMarketCap)
Nonetheless, trader sentiment remains predominantly optimistic. Data from Coinalyze reveals that over 70% of traders in the top 10 altcoin markets hold long positions, reflecting continued confidence in a potential recovery.
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Valentin Fournier, Lead Research Analyst at BRN, remarked:
“Despite near-term weakness, the underlying structure remains bullish. Corporate demand continues to increase, and the reduced FTX repayment burden eases one of the market’s key downside risks.”
$976 million in crypto liquidations
The sharp market correction triggered a substantial wave of liquidations. CoinGlass reports that more than $976 million in positions were liquidated, impacting over 316,000 traders.
Long traders, who were betting on price increases, suffered the most, incurring losses of $840 million. Short positions accounted for the remaining $135 million in losses.
Crypto Market Liquidation Heatmap (Source: CoinGlass)
Ethereum traders experienced the most significant impact, with liquidations totaling approximately $200 million. XRP followed with $115 million in losses. Other altcoin traders collectively saw $177 million erased.
Meanwhile, Bitcoin traders faced relatively modest losses of $84 million.
The largest single liquidation event occurred on Binance, involving a $2.96 million long position on the BTC/USDC pair.
The post Ethereum and XRP lead $976 million liquidation wave as altcoin rally pulls back appeared first on CryptoSlate.
