The general bearish sentiment reflects the current weakness in major markets such as Bitcoin and Ethereum. When these leading cryptocurrencies lose strength, investors tend to withdraw from altcoins first, as these tend to be more volatile and less liquid. This phenomenon creates a domino effect in which:

1. Massive Liquidations: Traders with leveraged positions are expelled from the market as they are unable to maintain their margins.

2. Lack of Confidence: Altcoin holders prefer to sell before losses are amplified.

3. Flow to Leading Assets: Many capitals migrate to Bitcoin and stablecoins to take refuge, increasing the selling pressure on altcoins.

It is a recurring pattern in bearish markets and can mark buying opportunities at key supports, although with a cautious approach. $XVG