Bitcoin (BTC) price slipped modestly to around $117,000, while major altcoins such as XRP, Dogecoin (DOGE), and Solana (SOL) posted significant losses over the past few days, raising doubts about the sustainability of the current altcoin season. According to CoinDesk data, XRP, DOGE, and SOL each dropped about 5% in 24 hours, with XRP and DOGE plunging 18% and SOL falling 12% from midweek highs. The CoinDesk 80 Index, tracking mid-cap tokens, lost 10% from its weekly peak.
Ethereum (ETH) also fell about 4% from weekly highs but remained supported by steady accumulation from crypto treasury firms. The sharp decline followed weeks of heavy capital inflows into smaller tokens, fueling speculation of a full-fledged altcoin season — a period when altcoins outperform Bitcoin for an extended duration.
CoinGlass’ Altcoin Season Index dropped to 41 from Monday’s 59, its highest since January’s speculative rally. Coinbase research head David Duong noted that altcoin valuations nearly doubled since April, but excessive leverage in altcoin derivatives fueled the recent sell-off. The Altcoin Open-Interest Dominance metric hit 1.6, a historically high level often preceding market corrections, suggesting further volatility if leverage isn’t reduced.
Analysts highlight Bitcoin Dominance as a critical indicator for confirming altcoin season. The metric recently broke below its 200-day moving average for the first time since January 2025. A sustained move lower could validate an extended altcoin rally similar to 2021, but experts caution investors to wait for multiple confirmations before re-entering the market.
This market shift underscores growing volatility in altcoins and the importance of closely monitoring Bitcoin’s dominance and leverage metrics for upcoming trading strategies.
