Broad Altcoin Retreat Hits SOL, XRP, TON Amid Market Consolidation

Altcoins Slide Sharply as Bitcoin Dominance Surges Past 60%, $200M in Longs Liquidated

The altcoin market saw steep declines on Wednesday, erasing recent gains and reigniting concerns that the anticipated “altseason” may be stalling before gaining real traction. The downturn led to more than $200 million in long liquidations across crypto markets, while Bitcoin’s dominance climbed past 60%—a level not seen in months.

Leading the decline were major tokens like XRP, Solana (SOL), and Toncoin (TON), which dropped 5.2%, 7%, and 11% respectively. Ethereum (ETH) also saw notable losses, with $43 million in long positions liquidated, the highest among altcoins. XRP followed with $32 million in liquidations.

The sell-off highlights a structural challenge in the altcoin market: lower liquidity. While Bitcoin enjoys deep order books—about $40 million in two-percent market depth on each side across top exchanges—altcoins like XRP average just $5 to $6 million. That makes them more susceptible to slippage and cascading liquidations from modest sell orders.

Despite a wave of bullish technical breakouts last week, the current correction has placed key support levels in question. For ETH, the $3,470 mark now represents critical support. A breakdown below that level could trigger further sell pressure and more liquidations.

Open interest for ETH remains elevated at $24 billion—more than twice its peak during the 2021 bull run—underscoring the heavy use of leverage in recent price action. That leverage adds fuel to both rallies and declines.

Market sentiment has also turned more cautious. CoinMarketCap’s altcoin season index dipped from 55 to 47, reflecting the broad-based weakness in altcoins despite a recent pickup in retail participation.

Analysts say a return to altcoin outperformance may require Bitcoin to break to new all-time highs—above $124,000—and establish strong consolidation. Until then, capital may continue to concentrate in BTC as traders reduce risk and wait for clearer signals.