Crypto Market Downturn: Dogecoin and Solana Hit at the Heart!

Crypto Market Downturn

The cryptocurrency market has plunged into a period of correction, with total market capitalization plummeting by billions of dollars. Dogecoin (DOGE) and Solana (SOL) have led the decline, accompanied by high leverage, increased selling, and broader macroeconomic uncertainty.

Dogecoin and Solana See Sharp Losses

Dogecoin currently trades at $0.3756, experiencing a 12% price drop—one of the steepest in this market correction. Despite 60.9 billion DOGE being transacted in 24 hours, enormous selling pressure has prevented price recovery. Large transactions surged by 41.2%, but this did little to alleviate losses for DOGE investors.

Solana followed suit with a 10% decline to $227. Overbought conditions and the general market correction have battered the token. Solana's token market cap shed over $100 billion in a single day. Although trading volume increased by 43.2%, this is indicative of increased selling rather than positive market sentiment.

Market-Wide Impact and Liquidations

Other major cryptocurrencies, including BTC and ETH, have also suffered losses. BTC dropped by 6.1% and ETH by 4.5%. Altcoins facing the heaviest losses are Cardano's ADA and XRP, down 14.7% and 10.7% respectively. Within 24 hours, the total cryptocurrency market cap declined by a significant 5%, bringing it down to $3.2 trillion.

Liquidations have also escalated, exacerbating the situation. According to CoinGlass, total liquidated crypto positions exceed $691 million, with $150 million attributed to Bitcoin. The largest liquidation occurred on Binance, involving $4.67 million in a long position. Over 180,000 accounts have been liquidated, highlighting the risks of high leverage in volatile market conditions.

Economic Indicators and Market Outlook

The crypto market's performance is heavily influenced by broader economic developments. Bitcoin's drop coincided with a $435 million outflow from spot exchange-traded funds on Monday, breaking the trend of net inflows. This signals investor caution amid uncertainty over Federal Reserve policies and inflation.

The minutes of the upcoming federal open market committee meeting will provide insights into the future course of monetary policy, particularly following the recent interest rate cut. Additionally, the Personal Consumption Expenditures (PCE) data, expected a few days before Thanksgiving, is likely to provide evidence of rising inflation, which could influence the Fed's decision to raise interest rates in December.

**Despite the downturn, not all are pessimistic. Real Vision CEO Raoul Pal believes the correction is part of the crypto market cycle and anticipates a strong rebound. He also suggests that Dogecoin could potentially outperform Bitcoin in the long run. However, concerns remain over excessive leverage and market overheating.

The future of crypto investors depends on how the market stabilizes. If the downtrend continues, further corrections may occur. However, some see it as an opportunity to reset overbought positions and establish a more sustainable market. The market's trajectory will likely be determined by upcoming economic reports and policy announcements. Short-term investors should exercise caution as volatility is expected to persist in the near future.

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