Early on Aug. 20, a bearish sentiment had taken firm control of the market, painting many altcoins red as investors appeared to pause, awaiting a positive macroeconomic signal to trigger a new rally. Among the steepest casualties of the downturn were major altcoins like XRP, which shed 4.2% of its value in 24 hours, and ADA, which suffered an even more significant blow with a nearly 10% decline over the same period.
According to Bitstamp data, XRP experienced a steep decline, momentarily falling to $2.84, its lowest point since Aug. 3. It then staged a partial recovery, trading at approximately $2.87 at 7:37 a.m. EST. This recent volatility caps a period of pronounced weakness for XRP, which has now seen its value plummet by 14% since the crypto market’s rally to an all-time high market cap on Aug. 14.
This makes it one of the worst-performing high-cap altcoins during this period. The sustained decline has caused XRP’s total market capitalization to shrink from just below $200 billion less than a week ago to around $170 billion. With this market cap, XRP’s lead over the fourth-ranked USDT at the time of writing was approximately $4 billion. On the other hand, Cardano’s ADA has declined by more than 15% since peaking above $1 on Aug. 14.
Other altcoins that had significant losses were DOGE, which was down 3.4% in 24 hours and 13.8% over seven days. SUI and XLM were both down 3.2% in 24 hours and 12% lower over a seven-day period.
Meanwhile, ETH, which recently came close to surpassing the $4,800 mark, briefly dropped to $4,080 before reversing some of those losses. At the time of writing, ETH traded around $4,200 to bring its 24-hour losses to just over 2% and seven-day losses to more than 10%.
Source: markets.bitcoin.com
Despite the prevailing bearish sentiment, some experts remain convinced that altcoins are braced for an “altcoin autumn,” a period where altcoins are expected to outperform Bitcoin. However, the experts warn that this “autumn” will likely be different from previous cycles.
Zondacrypto CEO Przemysław Kral, who attributes the current market dip to geopolitical anxieties, said it is important for traders to understand “the dynamics of this autumn” before a potential shift in market leadership.
“For investors, this means going back to fundamental analysis and assessing the true potential of projects beyond just Bitcoin. Diverse opportunities emerge alongside macroeconomic tailwinds. However, they must acknowledge that the days of broad altcoin rallies, driven purely by hype or vibes, may be behind us,” Kral added.
The CEO, however, added that while upcoming token unlocks will likely “exert downward pressure,” Kral sees increased opportunities for altcoins and this demands an “understanding [of] tokenomics more crucially than ever.”
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