Altcoin market reels as bears resurface amid declining November profits.
Token unlocks amplify concerns over altcoin oversupply and market dynamics.
The altcoin market, which experienced a promising uptrend in the last quarter of 2023, is now grappling with a resurgence of bearish sentiments. Despite hitting impressive highs earlier in November, several top altcoins are now facing significant retracements, sparking fears among investors and traders.
Ethereum, the leading altcoin, soared to a seven-month high of $2130 on November 10. However, it has struggled to break the resistance, fluctuating between the range of $1999 and $2099 in recent days, hinting at a slowdown in its bullish momentum.
However, this downturn in sentiment is not exclusive to Ethereum; it has rippled across the altcoin landscape.
Avalanche (AVAX)
Avalanche, ranking 13th in market capitalization, experienced a historical rally, hitting a fifteen-month high of $25 in November start. However, currently, in the span of just 24 hours, it faced a 7% decline, trading at $20. Moreover, its trading volume has decreased by 5%, intensifying the struggle between bullish and bearish forces.
AVAX Price Chart, Source: TradingView
Solana (SOL)
Solana, the 7th largest coin in market capitalization, made headlines by reaching an eighteen-month high of $69 in the second week of November. Presently, it trades at $54, indicating a 5% decrease in the past 24 hours. However, its performance over the month still shows a remarkable surge of 70%.
SOL Price Chart, Source: TradingView
Polygon (MATIC)
Polygon, positioned 14th in market capitalization, followed a similar trajectory. After reaching a six-month high of 0.9837 on November 14, MATIC has slipped to $0.7416. It witnessed a 9% decline in the past week.
MATIC Price Chart, Source: TradingView
Furthermore
Adding to the volatility, several major alternative cryptocurrencies, including DYDX, OP, SUI, AXL, IMX, 1INCH, and HBAR, witnessed declines as large token unlocks affected their prices negatively. Altcoins are anticipated to witness a staggering increase of approximately $650 million in their circulating supply throughout this week, amplifying concerns about oversupply and market dynamics.
Moreover, research reveals that DYDX alone is set to double its current circulating supply with an additional $480 million worth of tokens entering the market. It adds pressure to its price trajectory.
As the broader crypto market navigates these shifts, the resurgence of bearish trends and the looming influx of tokens raise caution flags among market participants. The coming days are poised to test the resilience of altcoins and their ability to weather market fluctuations.