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Large-cap cryptocurrencies such as Ethereum (ETH), Solana (SOL) and XRP are gradually losing their appeal for cryptocurrency investors. These assets were previously considered core combinations for smaller investors. However, they have now fallen below the price levels seen at the beginning of the year.
The series data indicates that investors are increasingly facing losses. The question is, do they still have the chance to recover what was lost?
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Loss pressures can drive away new investors
BitP/B ratio data for Bitcoin, XRP and SOL provided by Glassnode shows a continuous decline since October.
The Bid/Peak ratio measures the number of coins whose last move occurred at a price lower than the current value. The decrease of this indicator indicates that fewer currencies are in profit.
On the contrary, the number of coins held at a loss increases as the prices of large-cap cryptocurrencies continue to fall.
% Bid-at-Loss of Glassnode, for the main assets:
BTC: 34.91%
XRP: ٣٦,٧٠%
ETH: ٣٨,٣٧%
SOL: ٧٤,٨٤%” Glassnode report.
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In addition, the realized loss provides clearer visibility. It refers to the total USD value of the currencies that were moved when their previous prices were higher than the current market price.
This metric reflects an average realized loss of 7 days, which highlights the position of new traders who bought during the recent price decline.
As of November 25, ETH, SOL, and XRP recorded their highest 7-day average losses since the April market crash.
GlassNode said that “realized losses among new investors in major altcoins are increasing, as prices continue to struggle to recover themselves, indicating increasing pressure in the speculative end of the market.” comments
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May she continue Pressure on leaks Urgently new entrants to the market to exit, thus preserving the capital, which can worsen the momentum of the downward price.
Many investors start to focus on altcoins with more attractive stories, for example privacy coins andneobank coins.
Short-term expectations: the most important condition for recovery
Santiment offers a more optimistic framework using indicators on the chain. Based on the MVRV (Market to Realized Value) report, holders of ADA, LINK, ETH and XRP in the short and medium term have seen notable losses.
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Instead of focusing on the losses, Santiment states that these assets may be undervalued. This indicates the possibility of recovery towards the average rating levels.
What conditions are necessary for altcoins with a large market capitalization to regain their leadership role in the market? The Altcoin Vector for Enterprise report from Swiss Block says the answer depends on Bitcoin price movements.
“The final trajectory of Q4 could offer a turnaround if $BTC stabilizes as it did in April, setting the stage for expansion,” predicted Altcoin Vector. Expectations.
However, even Bitcoin faces strong selling pressure This month. May Bitcoin recovery is the fastest catalyst To break the pessimistic sentiment in the market that persists throughout the month.
