The cryptocurrency market is currently experiencing a significant decline, with major coins such as ETH and XRP seeing notable decreases in their prices. ETH is trading below $3K once again, marking a 4% decrease for the day. XRP has dropped by 5%, and the bulls are struggling to defend the critical $0.4 level. As shown in the heatmap, all large-cap altcoins are trading in the red, indicating a widespread downturn in the market.
The recent decline in the market has led to almost $300 million worth of liquidated leveraged positions, with the majority of them being long positions. While $113 million were short positions, the choppy price action suggests uncertainty and volatility in the market. One category that has been hit particularly hard is that of meme coins, with the entire sector seeing a 10% decline in the past 24 hours alone.
Market Sentiment
The popular Crypto Fear and Greed Index currently shows a sentiment level of 28 points, indicating fear in the market. This is a significant drop compared to 53 points last week and 72 points last month. The decrease in sentiment suggests that investors are cautious about potential selling pressure that could arise from creditors disposing of their recovered BTC and BCH from the Mt. Gox exchange.
Major meme coins such as DOGE, SHIB, PEPE, WIF, BONK, and FLOKI are all experiencing significant declines in their prices. DOGE is down 6.4%, SHIB is down 4.8%, PEPE declined by 10%, WIF dropped by 9.5%, BONK is down 6%, and FLOKI is down 6%. The plummeting prices of these meme coins further add to the overall negative sentiment in the cryptocurrency market.
The current state of the cryptocurrency market is characterized by widespread declines in prices, liquidated leveraged positions, fear in market sentiment, and significant drops in meme coin prices. Investors are advised to exercise caution and closely monitor market developments to make informed decisions in such volatile times.
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