The cryptocurrency market is experiencing a significant decline on Monday morning, with major coins like ETH and XRP seeing notable decreases. For instance, ETH is trading below $3K once again, marking a 4% decrease for the day. XRP has dropped by 5%, and the bulls are now struggling to defend the critical $0.4 level. Looking at the heatmap, it is evident that all large-cap altcoins are trading in the red, showing a widespread downturn.
The recent downturn has led to the liquidation of almost $300 million worth of leveraged positions, with the majority being long positions. Additionally, about $113M were short positions, indicating choppy price action in the market. One notable category that has been significantly affected by the decline is that of meme coins. According to CoinGecko, the entire meme coin sector has experienced a 10% decrease in the past 24 hours alone. Major meme coins like DOGE, SHIB, PEPE, WIF, BONK, and FLOKI are all plummeting at the moment, with significant drops in their values.
The current market sentiment, as indicated by the Crypto Fear and Greed Index, is fearful at 28 points. This marks a stark contrast to previous weeks, with the index being at 53 last week and 72 last month. Investors and traders are cautious about the potential selling pressure that could result from creditors disposing of their recovered BTC and BCH from the Mt. Gox exchange. This uncertainty is contributing to the overall negative sentiment in the market.
The cryptocurrency market is going through a challenging period with widespread declines in major coins and meme coins alike. The liquidation of leveraged positions and the cautious market sentiment further add to the current uncertainty. It will be crucial for investors to closely monitor the market developments and have a risk management strategy in place during this volatile period.
