While the last 24-hour losses have flattened in the altcoin market, weekly losses remain at a solid 30%. Technical analysts warn that the decline may continue for a while in the latest reports.
Altcoin market will leave the hardest week of the year behind
The altcoin market witnessed a massive crash in the early morning of June 10. Within 24 hours, major altcoins including Algorand (ALGO), Cardano (ADA), Polygon (MATIC) and Solana (SOL) saw their prices drop 20%.
In particular, ALGO did not leave a single investor profitable with the last drop. The altcoin also broke the recent low of $0.10 after losing around 17% of its value in an hour. However, it was able to recoup some of its losses with buyers coming in from the bottom.
Altcoins subject to SEC lawsuits suffer biggest loss
The SEC has filed a lawsuit this week against the two largest cryptocurrency exchanges, Binance and Coinbase. The biggest losers of the week, Algorand (ALGO), Cardano (ADA), Polygon (MATIC) and Solana (SOL), were among the altcoins the SEC considered securities under the lawsuit.
These altcoins, which are among the top 50, experienced the biggest loss of value of the week. Bitcoin, on the other hand, is reaching local highs in terms of market dominance (BTC.D) as a result of the collapsed altcoin market.
Santiment reports crypto prices falling below true value
The analytics firm shared an analysis on Twitter yesterday that the realized caps of altcoins are of very low value. According to the post, the short- and medium-term realized capitalizations of cryptocurrencies are significantly lower than the respective market capitalizations, especially for smaller and lesser-known altcoins.
The current situation is reminiscent of early March 2023, when such an impairment was observed. Previously, this was just before a 1-month fluctuation. But only time will tell whether this will be the case in the current market scenario.
🗠 Short & mid-term realized caps are far below market caps, and this becomes more true the smaller and more obscure the #altcoins are. The last time we saw this kind of undervalued realized cap level was in early March, just prior to the 1-month surge. https://t.co/cTeZpby5DR pic.twitter.com/qecOZQn1ti
— Santiment (@santimentfeed) June 9, 2023
What can analysts expect?
Forecasting about the future of the market, Miles Deutscher suggested that the delist storm caused by the lawsuits will prolong the selling pressure for a while. cryptocoin.comaspect
