Altcoins have faced double-digit declines
Powell's statement has negatively impacted the sector. Bitcoin fell by 2.85% over 24 hours, but altcoins suffered more. Ethereum (ETH) dropped by 4.7%, reaching a price range of $3600, while XRP and Dogecoin $DOGE plummeted by 6.3% and 6.22% respectively. The total market capitalization of cryptocurrencies fell by 3.44% to $3.5 trillion.
The Santiment report also noted significant losses in the altcoin market:
Avalanche (AVAX): down 8.17%
Chainlink ($LINK ): down 9.31%
Litecoin (LTC): down 11.40%
Polkadot ($DOT ): down 7.44%.
Despite the bearish sentiment, Santiment suggested that the market reaction may be exaggerated. Cryptocurrencies with the largest price declines, such as AVAX, LINK, and LTC, may provide opportunities for investors looking to capitalize on the downturn.
Market indicators are sending mixed signals. The daily relative strength index (RSI) for non-Bitcoin and Ethereum assets is at 50, indicating a balance between buyers and sellers. A slight upward trend in the RSI hints at a potential rebound.