Altcoins in Turmoil: Dogecoin, Solana, and Cardano All Plunge as Market Enters Natural Correction
Bitcoin and Ethereum Hold Ground While Major Altcoins Fall into the Red
The crypto market on Thursday morning saw a sharp correction from top altcoins such as Dogecoin (DOGE), Solana (SOL), Cardano (ADA), and Avalanche (AVAX), despite the short-term positive sentiment following the US CPI inflation data for May. While Bitcoin and Ethereum held firm with minor losses, riskier assets quickly came under clear selling pressure.
DOGE, SOL, and ADA Lead the Decline
Dogecoin fell 5.8% to $0.19, followed by Cardano losing 5.1% and Solana dropping 3.9%, despite SOL’s recent impressive recovery. Other altcoins were not spared from the correction either: Avalanche fell 5.4%, Sui lost 5.6%, and Chainlink plunged 6.7%.
Even Tron (TRX), one of the more stable altcoins of late, fell as much as 6.8%, trading around $0.2717. This broad decline suggests that profit-taking is widespread among retail and speculative investors.
Bitcoin and Ethereum “shelter” in correction storm
In contrast, Bitcoin (BTC) and Ethereum (ETH), the two largest coins by market capitalization, fell only 2% and 1.5%, respectively, maintaining their relative safe haven status amid the greater volatility of the altcoin market. BTC is still trading around $107,000, after briefly approaching $110,000 yesterday on positive CPI data.
According to data from CoinGecko, although the consumer price index rose by a lower-than-expected 2.4% in May, crypto market sentiment appeared to improve only briefly before profit-taking took over again.
Natural correction or sign of uncertainty?
Experts believe that this correction is a normal technical reaction after a series of days of price increases, rather than reflecting a structural change in market trends.
"A sub-5% move in the altcoin market should be considered noise," said Dr. Kirill Kretov, senior automation expert at CoinPanel. "Altcoins are inherently riskier, so daily swings of up to 10% are still within the normal technical correction zone."
Sharing the same view, Tracy Jin, COO of MEXC exchange, said: “Many traders are taking profits, especially in projects with high volatility. They do not want to bet more when the market does not have a clear momentum to the upside.”
Jin also noted that macro factors such as the strength of the US dollar and rising government bond yields have reduced the attractiveness of risky assets such as cryptocurrencies, despite signs of cooling inflation.
Is Dogecoin showing signs of entering a “mid-term decline” phase?
It is worth noting that Dogecoin may be falling into a more sustainable downtrend than other altcoins. According to Paul Howard, Senior Director at Wincent, DOGE is being influenced by factors other than technicals, specifically the recent public debate between billionaire Elon Musk and former President Donald Trump.
“Dogecoin is not only pressured by technical factors but also caught in a split in its support community,” Howard said. “This situation could lead to negative sentiment for DOGE in the medium term.”
Positive signals persist Market needs time to ‘cool off’
Despite the current strong selling pressure, many experts remain cautiously optimistic about the market’s prospects in the coming weeks, especially if Bitcoin holds above $100,000, a key psychological and technical threshold.
“We are in a short-term overhang. If institutional money continues to flow into the market, this could be a springboard for the next wave of altcoin price increases,” Jin from MEXC said.
Conclusion: Corrections Are Not Disasters, They Are Necessary Rest
Crypto market history has shown that even deeper corrections than the current one are inevitable, and often open up new opportunities for patient and strategic investors. With the macro backdrop gradually stabilizing and inflation showing signs of cooling, altcoins could soon regain momentum as investor sentiment returns to a positive state.