Several of the largest altcoins underwent corrective movements down on Wednesday, suggesting a break or even the end of the Altcoin season before it really starts.
Net reductions repelled the domination of bitcoin over 60% while the oldest cryptography in the world remained relatively stable.
It was also remarkable by more than $ 200 million in long -term positions liquidated, including 43 million dollars on Ether (ETH) and $ 32 million markets on XRP (XRP). Although it bounces a little of its worst levels of the day, XRP remained 5.2% lower in the last 24 hours.
Sol and your were also among those that were hardly affected by the dive, losing 7% and 11%, respectively.
These sudden drops are linked to a lack of liquidity on altcoin trading pairs compared to bitcoin. The depth of the market of two percent on Bitcoin, for example, is around 40 million dollars on each side of the command book on Binance and Coinbase. For XRP, however, the total is between $ 5 million and $ 6 million on each side, which means that a market sales order of $ 6 million would result in 2% slip without taking into account liquidations.
Merchants will look forward to see if Altcoins will rebound after a series of technical eruptions last week. If ETH can maintain above $ 3,470, this would indicate a potentially upward resolution because this point of previous resistance would have reversed to become support. A break below this level could decimate the Altcoin market with more expected liquidations.
The open interest in ETH is still 24 billion dollars, much higher than during its summit in 2021 when it has not exceeded $ 10 billion, which indicates that a large part of the recent decision was motivated by the lever.
The indicator of the Altcoin season of CoinmarketCap also went from 55 out of 100 to 47, demonstrating a weakness in the Altcoin sector despite a recent increase in retail participation.
A return to the Altcoin season will probably be seen if Bitcoin can form a new record greater than $ 124,000 and start to consolidate above this point, leaving the capital pivoting more speculative Altcoin bets.
