SOL, XRP, TON Tumble as Altcoin Momentum Pauses

Altcoins Slide Sharply as $200M in Longs Liquidated, Bitcoin Dominance Rises Above 60%

The altcoin market suffered a significant pullback on Wednesday, wiping out over $200 million in long positions and pushing Bitcoin’s dominance above 60%—a signal that risk appetite may be fading outside of BTC.

Leading altcoins, including Ethereum (ETH), XRP, Solana (SOL), and Toncoin (TON), posted steep intraday losses. XRP dropped 5.2% in 24 hours, with $32 million in liquidations, while ETH saw $43 million wiped out. SOL declined 7%, and TON tumbled 11%, as traders rushed to exit leveraged positions.

The drop appears linked to thin liquidity conditions on most altcoin order books. For example, Bitcoin’s 2% market depth on major exchanges like Binance and Coinbase remains around $40 million per side, while XRP’s depth is just $5–$6 million—leaving the market vulnerable to sharp moves from even moderate sell orders.

ETH now faces a key test at $3,470. Holding that level could confirm bullish continuation, while a breakdown below it may accelerate further liquidations and extend the altcoin correction.

Despite the sell-off, ETH open interest remains elevated at $24 billion, suggesting speculative leverage is still high—more than double the 2021 cycle peak.

Meanwhile, CoinMarketCap’s altcoin season indicator slipped from 55 to 47, reflecting declining relative strength in altcoins versus Bitcoin. Analysts say a true return to altcoin season would require BTC to break and consolidate above $124,000, allowing capital to rotate into higher-risk assets.

Until then, markets may continue to favor Bitcoin as volatility and liquidation pressure weigh on the rest of the crypto sector.