The crypto market has been covered with red, right now. Altcoins such as Cardano (ADA) and Solana (SOL) have incurred greater losses than the top 2 players: ether and bitcoin. The move is apparently something that usually happens following notable rallies. It acts as a sort of pause.
The State Of The Crypto Market
At the time of writing, the price of ADA was $2.67. It indicated a drop of 7.6% over 24 hours. Meanwhile, SOL was at a loss of 13% with the price being $68. On 25th August, ADA was introduced to crypto markets in Japan. The debut has been compared to having a similar effect as that of Coinbase’s listing. Coinbase is the biggest and most trusted avenue crypto market-based in the US for accumulating Bitcoin.
Dogecoin, XRP, and Polkadot also showed losses of over 8%. At the same time, the Bitcoin price was down to $47,500. It was a decrease of 3.5%. Ether prices, on the other hand, were $3,100, which was a decrease of 5.5%. All crypto sub-sectors, including NFTs and DeFi, were showing red on the charts.
Laevitas, an analytics platform, said that altcoins were in a prime position for pulling back. This was because holding positions over a long time in the majority of the cryptocurrencies were becoming too expensive. They added that the crypto market’s price drop looked like a beneficial price correction.
Some coins such as SOL and ADA were in the overbought territory. Recently, they had rallies where new all-time highs were recorded. They even outperformed BTC by a notable margin. For example, in the previous 4 weeks, SOL had rallied 272% while ADA’s rally stood at 187%. Compared to that, Bitcoin’s rally was only a mere 70%.
Despite the pause, analysts are still confident that the major cryptocurrencies will be very fruitful in the long term.