The crypto market experienced a sharp downturn on Monday, with recent top-performing assets such as XRP (XRP), Tron (TRX), and Cardano (ADA) taking substantial hits.
This follows weeks of explosive rallies that had stunned market observers, propelling these "dino coins" to unexpected highs.
These altcoins saw steep declines as Bitcoin's retreat from $100K triggered widespread liquidations and a market-wide selloff. At the time of writing, Bitcoin is trading just above $97,000 and 2% lower than it was this time yesterday, according to CoinGecko data.
While XRP, which led the surge with a 450% increase last month, dropped 12% in the past 24 hours, falling to $2.17 from its recent high of $2.82, according to CoinGecko data.
TRX took a significant hit as well, plunging 16.6%, while ADA saw a 13.5% decline. Meanwhile, the world’s largest crypto Bitcoin (BTC) slid below $97,000 after briefly reclaiming the $100,000 mark.
The selloff intensified during U.S. evening hours on Monday, with over $1.5 billion in liquidations recorded, according to Coinglass data.
XRP alone accounted for $57.44 million in wiped-out derivatives positions, pointing to a trend of bullish sentiment being harshly corrected.
Bitcoin's decline triggered $189.18 million in liquidations, while Ethereum (ETH) and other major altcoins like Solana (SOL) and Dogecoin (DOGE) also faced significant losses.
"This selloff rivals the sharp crash of August 5, underscoring the volatility that continues to dominate crypto markets,” a CoinSwitch official told Decrypt. “However, seasoned investors understand that such pullbacks are often par for the course in a bull market.
“Historically, these dips have been followed by swift recoveries as fresh capital flows back into oversold assets," the official added.
ADA’s drop below the $1 level marked a critical point for investors, while Litecoin (LTC) saw $18 million in liquidations, struggling to hold above $112 before a modest recovery.
The decline follows Bitcoin’s failed attempt to hold above $100,000 level, which triggered a wave of profit booking, according to Edul Patel, CEO & Co-founder of Mudrex.
"When Bitcoin rises, it typically creates a wave of positive sentiment across the market, often lifting altcoins as well,” Patel told Decrypt. “However, after Bitcoin hit its psychological resistance at $100K, profit booking set in, leading to a consolidation at $96K accompanied by significant liquidations.
“Even the slightest indication of Bitcoin selling can trigger a ripple effect, causing altcoins to dip," he added.
Despite the recent volatility, the Mudrex CEO remains optimistic about the long-term outlook:
"This is definitely a temporary pit stop and a phase of accumulation before any further highs. Market cycles in crypto are often characterized by periods of consolidation after significant rallies.
Patel noted how such phases allow investors to reassess their strategies, accumulate assets, and prepare for the next market movement.
While short-term volatility is expected, the wider trend remains upward as adoption and interest in crypto grow alongside the steady evolution of regulations.
As the market moves forward, historical trends suggest potential recovery as investors reassess their positions and prepare for the next phase of the rally.
Edited by Stacy Elliott.