Altcoins Plunge as Market Sentiment Turns Bearish

Altcoins are currently experiencing renewed pressure as market sentiment has shifted back to pessimism. This bearish outlook is driven by a combination of global macroeconomic concerns, regulatory developments, and continued volatility across the digital asset landscape. Traders are becoming increasingly cautious about their investments, leading to a decline in the performance of many altcoins.

Despite a brief period of optimism sparked by geopolitical tensions between Iran and Israel, the market sentiment quickly reverted to pessimism. This shift is evident in the performance of several altcoins, including Hyperliquid (HYPE), Pi Network (PI), Ondo (ONDO), and NEAR Protocol (NEAR). These altcoins have seen declines in their prices, reflecting the broader market sentiment. For instance, HYPE, which had risen by 40.66% over the past six months, saw a decline of 2.10% in the last month and 4.107% in the past week. Similarly, PI saw a short-term gain of 11.19% in the past week, but this was preceded by a 21.76% drop over the past month and a 12.29% decrease in the last six months. ONDO and NEAR also experienced declines, with ONDO falling by about 47% over six months and NEAR falling by 57.66% over the same period.

The renewed bearish sentiment has also affected meme coins, such as XYZVerse (XYZ). Despite entering the meme coin market during a time when community-driven tokens dominate speculative trading, XYZVerse saw a decline in its price. This decline is a reflection of the broader market sentiment, which has turned bearish due to global macroeconomic concerns and regulatory developments. Traders are becoming increasingly cautious about their investments, leading to a decline in the demand for meme coins.

Even major cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) have not been immune to the renewed bearish sentiment. Ethereum, which had seen a significant jump of 7% following the ceasefire between Iran and Israel, saw a decline in its price as the market sentiment turned bearish. Similarly, Bitcoin, which had regained ground, breaking above the $105K mark for the first time in months, also saw a decline in its price as the market sentiment turned bearish.

According to the analyst, many altcoins appear to have completed short-lived relief rallies, only to return to familiar price ranges. He believes this pattern signals that the broader correction is far from over. Solana (SOL) was highlighted as a key example. The analyst pointed out that SOL has fallen roughly 20% from a major resistance zone and suggested that its most realistic support lies between $60 and $80. Despite market hopes that the worst might be behind, the analyst warned that the true phase of capitulation has not yet arrived. In his view, both Bitcoin and altcoins still have room to fall before any meaningful recovery can begin.