Most altcoins like ETH, DOGE and XRP recorded a negative price drop in the past week. However, with a bull flag on BTC, and early Solana gains, this week might mean a lot for profiled altcoins.
Last week, the cryptocurrency market stayed volatile, with Ethereum (ETH), Dogecoin (DOGE), and XRP recording losses. Interestingly, Bitcoin also faced pressure as the crypto fear and greed index stayed in the fear zone, influencing increased caution among altcoin traders.
Amid this downturn, a rebound, led by Solana (SOL), is underway for altcoins.
Altcoin Volatility Grows, Solana Breaks the Trend
According to Coinmarketcap, Ethereum’s price dropped to $2,644.25 as of the time of writing, marking a 0.67% decline in the past 24 hours. XRP followed a similar trend, falling 0.67% to $2.45.Â
Dogecoin also struggled, dipping 1.42% to $0.2529 as long traders faced intense liquidation. Meanwhile, Solana was one of the few major altcoins to record gains, rising 1.63% to $205.23 in the last 24 hours.
Other altcoins, such as Polkadot and Chainlink, followed the downward trend earlier in the week before attempting a modest recovery. The total cryptocurrency market cap initially declined but later rebounded slightly. Despite this rebound, onchain trends show that investor sentiment remained weak.
One major factor affecting market sentiment in the past few days is the growing uncertainty around global trade policies. Tensions between the United States and its key trading partners China, Mexico, and Canada have made investors more risk-averse.
For example, U.S. President Donald Trump announced a 25% tariff on goods from Mexico and Canada and a 10% tariff on Chinese imports. However, he later paused tariffs on Canadian and Mexican goods for 30 days pending negotiations. Meanwhile, the tariffs on Chinese imports remain in place.
Similarly, Institutional demand for crypto assets has also remained weak. A major sign to show for this is the net outflows from Bitcoin and Ethereum exchange-traded funds (ETFs).Â
Additionally, MicroStrategy, rebranded to Strategy last week, paused its Bitcoin purchases for the second consecutive week, signaling a more cautious stance from corporate investors.
What Next For Altcoin Market
The crypto fear and greed index remained low, showing that fear continues to dominate investor sentiment. Based on history, cryptocurrency prices tend to struggle under such conditions, and these past days were no exception.
However, some technical indicators suggest a possible reversal. Additionally, Bitcoin has developed a bullish flag pattern, indicating the potential for a rebound in the coming weeks. If BTC pulls its rebound, altcoins may join, a sign already visible for Solana as of writing.
As the market adjusts to ongoing market volatility, traders and investors will watch closely for signs of stabilization and renewed buying interest.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
