Altcoins Plunge Up To 18.6% As Bitcoin Holds Steady

This week, the crypto market experienced significant volatility, with altcoins bearing the brunt of the losses. Despite Bitcoin's stability near its all-time highs, several top altcoins have seen substantial value erosion. The five worst-performing altcoins over the past seven days are Pyth Network (PYTH), Story Protocol (IP), Sonic (formerly Fantom) (S), IOTA (IOTA), and EOS (EOS).

Pyth Network, a leading oracle solution backed by major exchanges, saw an 18.6% drop and is now near a long-term support zone. Story Protocol, a Web3 IP platform, experienced a 14.13% decline but has been gaining traction with strong VC backing. Sonic, which recently rebranded from Fantom, lost nearly 12% due to confusion but remains one of the most efficient Layer 1 solutions. IOTA, an original token with new smart contract capabilities and a focus on IoT, dropped 10.63% but is considered a sleeper altcoin with significant upside potential. EOS, despite long-term skepticism, holds a $1.1 billion market cap and saw a 10.59% decrease this week.

Historically, altcoins tend to lag behind Bitcoin's initial surge during bull cycles. As institutional money flows into Bitcoin, retail investors often rotate into lower-priced, high-upside tokens, leading to an altcoin season. This pattern has been observed in previous cycles, including 2017 and 2021, and is setting up again in 2025. The Total Crypto Market Cap excluding Bitcoin (TOTAL2) chart indicates a critical juncture, with the market cap sitting at $1.19 trillion, right above key support at $1.18 trillion. The 50 SMA is overhead at $1.22 trillion, indicating resistance but also the next target if a bounce occurs. The RSI (14) is at 36.51, approaching oversold conditions—a typical reversal zone for altcoins.

Despite the recent dip, there is a strong reason to believe these coins could bounce hard once Bitcoin price breaks its previous all-time high. Altcoin pullbacks are a common occurrence, but historically, deep dips like these have often preceded explosive rallies, especially after Bitcoin hits new highs. As the broader market is poised for rotation into altcoins, these five tokens may just be the early entries into the next major pump.