Altcoins in Freefall: ETH, SOL, ADA, DOGE, and More Collapse
On Monday morning, Ethereum’s decline below $4,300 triggered a series of events that caused altcoins to suffer and wiped out almost $487 million in long holdings. There was a severe selloff in cryptocurrencies, with Hyperliquid (HYPE) falling 7.36% to $43.60 and Sui (SUI) plunging 7.14% to $3.57. According to CoinMarketCap data, Solana (SOL) fell 6.64%, and Cardano (ADA) fell 6.35%. Over the past day, Dogecoin (DOGE) has retreated 6.73%, Stellar (XLM) has lost 4.86%, and XRP (XRP) has gone down 3.82%.
This looks like a fairly natural pullback after the strong run many cryptocurrencies had seen in recent weeks, with liquidations amplifying the downside across the market. Since altcoins tend to react more sharply during these periods, tokens like HYPE and SUI experienced even steeper declines,
Nansen analyst Nicolai Sondergaard
Liquidation Wave Hits Before Jackson Hole
The liquidation wave occurred prior to the Jackson Hole symposium on Thursday. According to recent reports from analysts at QCP Capital, some traders think the overnight fall was a sign of risk aversion before Fed Chair Jerome Powell takes the stage at the symposium. Despite spot prices increasing over the weekend, QCP analysts highlighted that BTC funding rates had been warning of danger, with rates going negative by Saturday.
Market-Wide Crypto Decline: Why Could Altcoins Suffer More Than Bitcoin?
Major altcoins like Ethereum, Solana, Cardano, and others are particularly vulnerable to changes in the macroeconomy, such as changes in interest rate guidance and liquidity. Analysts observe that concentrated ownership and leveraged positions are escalating price fluctuations, rendering cryptocurrencies more susceptible than Bitcoin. Because any collapse might lead to additional liquidations and prolong the market-wide selloff, traders are closely monitoring important support levels.
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