The recent rally in altcoins hit a major roadblock on Wednesday as several major tokens, including Solana (SOL), Ripple (XRP), and Toncoin (TON), suffered steep losses. The correction resulted in over
$SOL 200 million in long positions being liquidated across the crypto market and pushed Bitcoin’s dominance above 60% once again.
The sharp decline has cast doubt on the continuation of the so-called “altcoin season,” which had shown signs of strength in recent weeks. Ether (ETH), for example, dipped 2% and saw $43 million in liquidations, while XRP plunged 7% and accounted for $32 million in long position wipeouts. XRP closed the day down 5.2% despite a modest recovery from its intraday low.
Solana and Toncoin were among the hardest hit, dropping 7% and 11%, respectively. Analysts attributed these steep declines to thin liquidity in altcoin markets relative to Bitcoin. Market depth analysis showed that Bitcoin has roughly $40 million in liquidity on either side of the order book on major exchanges like Binance and Coinbase. In contrast, XRP's depth ranges between $5 million and $6 million, making it highly susceptible to price swings from relatively modest sell orders.
Ethereum’s performance in the coming days will likely be critical for determining the altcoin sector’s near-term outlook. The $3,470 support level has become a key marker; if ETH holds above it, bulls may regain control. A break below could trigger another round of liquidations and further losses across the altcoin board.
Adding to the concern is Ethereum’s open interest, which currently stands at $24 billion — far higher than the $10 billion seen during its 2021 peak. This elevated figure suggests that leverage has been a major driver of recent price movements, increasing the risk of volatility and cascading liquidations.
CoinMarketCap’s Altcoin Season Index has also slid from 55 to 47, reflecting a broader weakening across non-Bitcoin crypto assets. Despite increased retail activity, the retreat in altcoin performance and growing market fragility hint that momentum may be shifting back to Bitcoin.
Market watchers suggest that a return to altcoin strength could occur if Bitcoin breaks to a new all-time high above $124,000 and stabilizes. Such a move would potentially free up capital to rotate into altcoins, rekindling speculative interest across the sector.
For now, however, altcoins are facing a tough road ahead as the market digests leverage, liquidity concerns, and the possibility of a deeper correction #XRP
#ETH🔥🔥🔥🔥🔥🔥 #SOL空投