The cryptocurrency market has made a turn on Friday, with many coins plunging into the red. Bears have seemingly assumed control ahead of the weekend. The total crypto market capital has slimmed down from a peak of around $1.931 trillion hours at the start of the day to $1.843 trillion as of writing. The leading cryptocurrency Bitcoin has dropped 3.85% and is headed towards support at $41,400, expectedly pulling altcoins with it.
Solana (SOL) has posted the biggest slump, Ether (ETH) trading above $2,740
The largest altcoin by market capital, Ether, plunged from a high of $2,845 earlier today to an intraday low of $2,707.56 before finding stability above this level.
It is currently trading at $2,743 – down 5.65% in the last 24 hours, with analysts predicting a further downtrend for the altcoin. Ether’s market capital has pared down correspondingly to $328.96 billion, CoinMarketCap data showed, at the time of writing.
Solana’s native token lost its momentum today and has receded almost 7% falling below the $100 price level. SOL has moved south from a 24-hr high of $100.83 and is now changing hands at $93.11 against the dollar.
Prior to the correction, SOL had been one of the best-performing tokens. SOL/USD surged from $84.50 during Monday’s trading session to a weekly high of $105.98 on Wednesday. This was the first time the pair had traded above $105 since 11th February.
Algorand (ALGO), Avalanche (AVAX), Theta (THETA) tokens are down over 3%
Algorand’s token ALGO has dipped 4.13% in the last 24 hours as per market data. Following a sharp rally on Sunday, ALGO notched a weekly high of $0.8931 on Monday but has since retraced below $0.80. It is currently trading at $0.7992 with a market capital of $5.30 billion.
AVAX, the eighth-ranked crypto asset by market capital on CoinMarketCap, has slid 3.01% in the last 24 hours. The crypto set an intraday high of $82.78 earlier today before crashing to $75.47 hours later. AVAX/USD is now changing hands at $79.81.
Theta (THETA) utility token has reclaimed $3.00 following a correction from $3.25 earlier today to a 24-hr low of $2.92. The market capital of the decentralized video streaming chain has contracted to $3.037 billion at the time of writing. THETA’s trading volume has pared down by almost 24% to $252.428 million.
Polygon (MATIC) and Cardano (ADA) have also sunk
Cardano (ADA) has climbed to seventh-place displacing Solana (SOL), which has suffered heavy losses in the last 24 hours. ADA lost support at $0.90 earlier today as the market came under heavy selling pressure. It is now holding above $0.88 – down 3.26% from yesterday.
After setting a 24-hr high of $1.64, MATIC/USD saw a steep descent to $1.52 alongside the majority of the top altcoins. Market data shows Polygon’s token has retraced 3.26% over the last 24 hours to $1.55 but is up about 8% over the last 7-days.
Here’s what is driving crypto prices south
The altcoin market recession tied to that of Bitcoin has been attributed to a combination of macro factors. The ascension of bears to take the reins ahead of the weekend puts pressure on many crypto-assets that rallied to new heights at the start of the week. The short-term outlook of altcoins remains bearish until Bitcoin can retest the grounds above $42,000. Some analysts are confident that the price of the leading cryptocurrency will move north, notwithstanding the current bearish sentiment.