124,246 traders burn as XRP, Solana crash

The crypto market posted significant losses after Bitcoin reached an all-time high on Tuesday. XRP posted high declines of almost 5% at the mid-week trading session despite Bitcoin reaching $94K on Tuesday, further decimating futures traders in the cryptocurrency market.

$28 million was virtually liquated in the last 24 hours at the XRP market.

Solana, the 4th most valuable crypto asset by market valuation dipped to $233 down by almost 300 basis points while about $11 million was liquidated for the day in the Solana’s future market

Over the last day, 124,246 traders were liquidated, bringing the total liquidations to $329.40 million. The largest single liquidation order occurred on Bitmex, where XBTUSD was valued at $6.02 million.

XRP price has been trending sideways for the past week, which is concerning for investors because this consolidation is a bearish continuation pattern. Even with the decline, XRP has recovered greatly from the sharp decline the asset saw at the beginning of October, rising 64% this month.

Market fundamentals show that on-chain liquidity tightening for XRP indicates that capitulation is imminent, a prerequisite for a full-fledged bull run.

Fear and Greed Index shows more capitulation

the Fear and Greed Index, which gauges market sentiment, is in the “extreme greed” range. This has historically indicated possible reversals in the cryptocurrency market. Extreme greed is frequently a sign of overconfidence on the part of investors. The market consequently becomes more susceptible. Additionally, it is prone to collapsing when abrupt selloffs occur. Even though Bitcoin, XRP, and Solana have proven resilient in comparable circumstances, this elevated sentiment might be a turning point. Their macro momentum may find it more difficult to sustain their current price levels When coupled with a drop in transaction volume

Bitcoin fundamentals healthy despite recent market correction

Bitcoin is expected to continue setting records when it approaches $100,000 later this year. Nevertheless, even though headwinds are already noticeable at the 90K zone, overbought daily studies indicate that traders may be able to recover some of the gains from a robust rally in recent days.

The market is still extremely optimistic due to the excitement surrounding Trump’s win, so the correction will likely be minor and serve as positioning for a push through 90K. The lower pivot should ideally remain at 80K while dips are contained by solid supports in the 86500/84000 zone.