Cryptocurrency market experiences a downturn as XRP, TON, and DOT prices plummet
The cryptocurrency market took a bearish turn in the last 12 hours, causing major coins like XRP, TON, and Polka Dots (DOT) to experience significant drops in their market capitalization. The primary reason for this market downturn was attributed to the plunge of Bitcoin, the largest cryptocurrency in the world, as traditional markets also faced uncertainty due to geopolitical tensions related to Iran’s possible attack on Israel.
Data from CoinMarketCap revealed that most tokens witnessed double-digit drops in their value, with XRP and DOT losing more than 10% and 14%, respectively, in the last 24 hours. Despite the decrease in value, the trading volume for both tokens surged significantly.
While XRP briefly overtook USDC to become the sixth-largest cryptocurrency, the recent market crash led to USDC regaining its position. Similarly, a well-known crypto analyst’s prediction of a bullish rally for DOT was invalidated by the market decline, indicating that the bottom of the cycle may not have been reached yet.
In contrast, TON was the least affected by the market downturn, with its value falling only by 4.4% in the last 24 hours. This relative stability could be attributed to TON’s strong performance the previous week, where its value surged, earning it a spot in the top 10 cryptocurrencies by market cap.
Despite the drop in value, the market sentiment around XRP, DOT, and TON turned bearish, as indicated by a sharp decline in sentiment according to Santiment data. However, there was an increase in buying pressure on XRP and TON, with currency outflows from exchanges rising and the supply of tokens decreasing.
The heightened buying pressure could potentially lead to a trend reversal for these tokens, as indicated by a decrease in open interest alongside the price drop. This suggests that there may still be a possibility for XRP, DOT, and TON to recover their lost market capitalization in the near future.