XRP, Solana, and Dogecoin Prices Drop as Bitcoin Declines
- XRP and Solana both fell 11% as top altcoins followed Bitcoin’s decline.
- Bitcoin dropped over 6% in 24 hours, touching $91,700.
- Even Dogecoin saw a decrease, but analysts suggest it’s not a cause for panic.
XRP, Solana, and Dogecoin have all experienced retracements of more than 10% each as they mirror Bitcoin’s pullback from its near $100k high.
BTC Momentum Fades
Bitcoin saw a significant rise in November, almost reaching the coveted $100,000 mark. Factors such as Trump’s win, interest in spot ETFs, and cuts in interest rates contributed to this upward momentum. MicroStrategy’s substantial BTC purchases also played a role in driving the price up.
Despite MicroStrategy’s massive $5.4 billion purchase on Monday, the price of Bitcoin continued to decline after failing to surpass $100k. This decline coincided with a $430 million liquidation in the market and ETFs recording over $438 million in net outflows, ending the market’s five-day winning streak.
Analysts at QCP Capital commented on the market outlook, stating that there are no immediate catalysts to push Bitcoin towards $100k, as the market lacks momentum due to upcoming U.S. holidays and key economic data releases.
Bitcoin’s price had dropped to $91,700 at the time of writing.
Not a Market Crash
While Bitcoin’s decline may raise concerns about volatility spreading to the broader market, analysts believe that it is not a cause for panic.
According to analysts, the growing downside risks and caution seen in ETH’s implied volatility are indicators of potential volatility in the coming days. However, they emphasize that this is not a crash but a retracement to levels seen the previous week. The market is merely taking a break after a strong rally.
At the time, XRP was trading near $1.32, Solana had dropped to $225, and DOGE was at $0.37.
