Ethereum went up with BTC, but why have Layer 1 and Layer 2 tokens like CELO, VIDT, MINA, VANRY, SXP, IOTX, STRK, AVAX, SEI, ARK, SUI, MANTA, and others started to decline?

Despite the bullish trends in Ethereum and Bitcoin, these tokens are experiencing a sharp downturn. The increased market volatility, combined with profit-taking, is pushing prices lower. Traders may have been drawn into these tokens during the recent uptrend, but now, with profits secured or fears of a correction, the mood has shifted. These projects, while fundamentally sound, often experience exaggerated swings in the market, especially when speculative hype fades.

Though SUI recently broke its all-time high, the momentum now seems to be fading, and many traders are anticipating a potential decline. The sharp rally that pushed the token to new heights has likely attracted a lot of short-term profit-taking, contributing to the current downward pressure. While the initial bullish breakout was fueled by excitement and optimism, it's important to remember that after such rapid gains, a correction is often expected.

The market's attention is shifting, and despite SUI's impressive price action, the broader trend in Layer 1 and Layer 2 tokens indicates a cooling off. This could be the beginning of a consolidation phase for SUI or even a more pronounced pullback as investors reassess their positions and look for more stable opportunities. With market sentiment leaning toward caution, it might be wise to prepare for some short-term weakness, even after breaking that all-time high.

However, this doesn't mean these Layer 1 and Layer 2 tokens won’t rise again. Some big names are involved in these projects, and this decline could be signaling to investors that prices are becoming more attractive. The pullback might be a good opportunity for those looking to buy in at lower levels before the next potential rally.

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