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ETH, SOL, XRP, DOGE and PEPE prices plummet amid declining sentiment
Crypto Market Settlement: The digital asset space witnessed a sharp decline today, with most altcoins failing to maintain positive momentum amid speculations of a possible sell-off. Although Bitcoin price remained near the bay, top altcoins and meme coins like Ethereum (ETH), Solana (SOL), XRP, Dogecoin (DOGE), Pepe Coin (PEPE) and others witnessed a sell-off today. So let’s take a look at recent market developments and see the possible reasons behind the recent sell-off.
Crypto Market Selloff: Why Are Altcoins Witnessing a Crash Today?
A number of reasons could be behind the recent crypto market crash, especially among altcoins. ETH, SOL, XRP, DOGE, and PEPE have experienced a price drop of 0.5% to 7% in the last 24 hours, drawing attention across the market.
Here we explore some of the key reasons behind the recent sell-off, which could potentially be driving the turbulent price movements.
Whale Reserve Profit
The crypto market has witnessed robust gains over the past few days with growing expectations regarding the Spot Ethereum ETF
and other regulatory developments in the space. Furthermore, pro-crypto sentiment amid the buzz of the US presidential elections also reinforced market watchers’ sentiment.
Considering this, several investors appear to be shifting their focus to the profit booking strategy due to the recent surge. For context, a notable Ethereum whale transaction raised eyebrows today.
According to the report, whale address 0xAeb…AED31 transferred 4,062 Ethereum from Lido to Binance, signaling a potential profit of $3.12 million on the sale. This move follows a trend in which the whale previously moved 18,446 ETH from Binanceending up selling part of it for a significant profit two months earlier.
The transaction highlights whales potentially cashing in on substantial gains, contributing to market volatility. Such profit-taking activities by large holders often trigger selling among retail investors, underscoring the impact of whale moves on crypto markets.
Different views on the Ethereum ETF
The Spot Ethereum ETF hype, especially following regulatory approval from the SEC, has driven the price of Ethereum higher in recent weeks. However, despite the growing optimism, several crypto market analysts have provided different perspectives on the potential performance of the investment instrument.
Although several market observers are optimistic about the price of Ethereum following the start of the Ethereum ETF Trading, some have argued a different picture. For context, some market experts anticipate that the US Spot Ethereum ETF will not have as much traction as the US Bitcoin ETFs.
Furthermore, a recent report from prominent research firm Kaiko suggests that in Launch of the Ether ETF
, Ethereum could witness an outflow of $110 million. Kaiko suggested the scenario by comparing it to Bitcoin ETF trading and due to GrayScale’s significant exit.
Read too: Vanguard Receives Backlash Over Ethereum ETF Ban, But There’s a Problem
Cautions in the meme coin sector
According to recent reports, Ark Invest CEO Cathie Wood offered a mixed view on the SEC’s stance on the ETF approval process. Cathie Wood suggests that regulatory approval for the Ethereum ETF could simply be due to the US elections
issue.
Additionally, she also said that while an ETF for Solana could be approved by the SEC, the meme coin ETF is unlikely to follow suit. In the midst of this meme coins such as Dogecoin, Shiba Inu, Pepe Coin and others, saw sharp drops today.
On the other hand, the recent rise in meme coins has also provided a profit-booking opportunity for crypto market participants. According to a recent data report from Lookonchain, a whale deposited 660.7 billion Pepe Coin, worth $9.52 million, on Binance today.
Notably, Pepe Coin reached a new high recently and allowed the whale to record a profit of $4.95 million from its recent sales, with an ROI of 52%. According to data from IntoTheBlock, 90% of PEPE holders are now in profit, making it one of the most “profitable among the top meme coins.”
Source: IntoTheBlock, X
Crypto Market Performance
The crypto market has been volatile lately, with investors seeking more clarity on the sector. Furthermore, the recent rise in cryptocurrency prices, especially meme coins, has provided an opportunity to liquidate holdings to make substantial profits for investors.
At the time of writing, the global cryptocurrency market capitalization is down about 2% to $2.51 trillion after reaching $2.57 trillion in the last 24 hours. Talking about the individual cryptocurrencies, Ethereum Price fell 2.51% to $3,716.64, while Solana Price witnessed a drop of 2.37% to $165.12.
According to data from CoinGlass, 72,546 traders were liquidated in the last 24 hours, with the total liquidation value amounting to $155.26 million. In the last 24 hours, Ethereum recorded a liquidation of $26.82 million, with long liquidation at $18.60 million and short liquidation at $8.22 million.
Read too: XRP is poised for a breakthrough, predicts former Ripple director