Crypto Markets See Red as Solana, XRP, Dogecoin Extend Losses

Fading Risk Eetite weighs on large altcoins, even if Bitcoin stays steadily in a narrow trade range for a second week.

XRP, Solana and Dogecoin fell by 5%, 5.9%and 7%respectively, according to the day according to the day Coentecko.

The correction coincides with Bitcoin’s short dip On Thursday was a movement that gave rise to a wave of liquidations on the market.

Creeks with DecryptShawn Young, chief analyst of Mexc Research, attributed the recent market traces to “Careful sentiment in the midst of thin summer liquidity” among investors.

The position is reflected by Bitfinex analysts, who said that the market was approaching a “critical point” as a result of surplus leverage in altcoins, making it vulnerable to a liquidation cascade.

Data from Coinglass show that Leveraged Long positions have been consistently wiped out, with liquidations that surpass at least $ 250 million in the last five days in a row.

The ratio of long to short liquidation for the period floats around 3. In other words, for every trader gambling at a price falls out of their position, at least three traders who gamble at a price increase are abandoned.

Mexc’s Young also pointed to the recent power of the US dollar and rising real yields as important pressure that not only influences Bitcoin, but also the wider cryptomarket.

The push and pull between macro-economic pressure are in line with the Singapore-based Handelsbureau QCP, which marked Wednesday that the muted reaction of crypto to positive headlines is a classic signal of ‘late cycle behavior’.

The market may have to be struggling for some time with this pressure before it finds a new momentum, Decrypt was told.