Many altcoins continue to experience sharp price decline, triggering uncertainty among investors about the much-anticipated altseason. As these tokens decrease further, their weak performance has negatively impacted the overall alt market value, leading to one of its biggest drawdowns in history.

Record-Low Drawdowns In Altcoin Market Cap

As negative sentiment grows in the crypto sector, the altcoin market is facing unprecedented challenges in terms of growth. In a recent post, world-leading on-chain data and financial platform Glassnode pointed out a troubling development in the alt market dynamics.

Despite expectations of a market-wide rebound, altcoins are still having difficulty because of shifting moods and macroeconomic uncertainty. Investor caution persists as many choose safer investments, further impeding any possible comeback for alts.

Data from Glassnode reveals that the alt market cap has declined by over $234 billion in the past 2 weeks, reflecting a period of heightened volatility. This broad-based capitulation represents one of the biggest absolute drawdowns the market has ever seen in recent history. 

It also highlights the ongoing weakness across the sector, with few assets holding up. Should the decline extend, the development could shape the market’s next trajectory in the upcoming weeks as volatility persists.

Furthermore, Glassnode noted that the market drawdown is one of the 41 worst moments in about 1662 trading days in terms of percentage. Although it seems severe, it is nevertheless consistent with major sell-offs in 2024. Also, it is significantly less severe than the LUNA/3AC collapses in late 2022 and the miner migration in May 2021.

The altcoin market is currently displaying potential for more correction since major alts failed to initiate a notable rally amid unfavorable conditions. Meanwhile, Bitcoin, the largest crypto asset is still more robust in the waning environment.

Bitcoin’s strong resilience is solely evidenced by investors’ realized losses in the ongoing cycle compared to past scenarios. Glassnode outlined that BTC investors locked in about $520 million in realized losses, which is one of the largest of this cycle. However, while the figures seem huge, it is far below the $1.3 billion recorded during the August 2023 yen-carry whirlwind.

Is The Alts Market Drop A Crucial Move For An Impending Breakout?

The altcoin market decline has caused fear and uncertainty among investors and crypto enthusiasts. Thus MilkyBull Crypto, a market expert and trader addressing the development claims that the drop is crucial for the market’s next trajectory.

This drop comes after the market reached a new all-time high. According to the expert, this is likely a retest before the market will experience a higher run. As a result, the expert urges investors to be steadfast as he foresees a surge to $2.9 trillion market value in the coming months.

Featured image from Unsplash, chart from Tradingview.com

The XRP price is eyeing a rally to the $8 price level, which will mark a new all-time high (ATH) for the crypto. This comes amid speculations that the US Securities and Exchange Commission (SEC) is set to acknowledge the XRP ETF applications.

XRP Price Eyes Rally To $8 Amid XRP ETF Decision

In an X post, crypto analyst Dark Defender predicted that the XRP price could rally to $8. This came as he assured market participants that the XRP structure hadn’t changed for 18 months. He added that the crypto has successfully followed this path during this period, which indicates that it could still reach this projected $8 level.

The crypto analyst also stated that Fibonacci levels are precise at $5.85 and $8.76, which also earlier hit $1.88, and XRP is now using this level as support. As such, Dark Defender advised market participants to ignore fear, uncertainty, and doubt (FUD) and focus on upcoming developments.

These developments likely include the XRP ETF applications, which the US SEC could acknowledge soon enough, paving the way for a potential approval. As Coingape reported, these XRP ETFs would significantly impact the XRP price, potentially contributing to the rally to the $8 target.

Meanwhile, the analyst’s accompanying chart showed that XRP would hit this $8 target on the Wave 5 impulsive move to the upside. The chart also showed that this rally to this price level could happen between May and September.

A Bullish Outlook For The Crypto

In an X post, crypto analyst Egrag Crypto provided a bullish outlook for the XRP price. He stated that XRP’s price action remains firmly positioned above the blue ascending channel, which he highlighted on the chart. The analyst added that this demonstrates both strength and momentum in its current trend.

Egrag Crypto then discussed XRP’s daily Stochastic Relative Strength Index (SRSI), which he revealed is on the verge of breaking above the critical 20 level, indicating a potential bullish shift. The analyst alluded to the Wave Trend Indicator, which he revealed has registered a bullish cross, a development that signals a favorable outlook for upcoming price movements.

Lastly, the crypto analyst also touched on the On-Balance-Volume (OBV), which he revealed remains in the green and is on the rise. According to him, this suggests increased buying pressure. This trend is also said to indicate that a significant price movement may be on the horizon.

It is worth mentioning that Egrag Crypto recently predicted that the XRP price could top at $13 in this market cycle. Meanwhile, he also predicted that XRP will reach $110 in the next bull cycle.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.