Tuesday saw a significant downturn in the cryptocurrency market, with a broad sell-off impacting various altcoins. Zcash (ZEC) led the decline, dropping 11%, followed by World Liberty Financial’s WLFI, which fell 8%, and Ondo Finance (ONDO), down 7%.
Bearish Sentiment Rises
The losses occurred amid growing bearish sentiment among investors. Blockchain analytics firm Santiment noted that such sentiment has historically preceded price rebounds. Santiment highlighted the declines of Ondo, Zcash, WLFI, and DeXe, among others, in a post on X.
Ondo Finance Faces Setback
Ondo Finance’s drop came shortly after the death of its 32-year-old founder and CEO, Nathan Allman. The company announced that Ian De Bode, the longtime president, will take over as CEO. The token is currently trading near $0.41, representing a gain of approximately 9% over the past seven days.
Zcash and WLFI Performance
Zcash’s 11% single-day drop was the steepest among the mentioned assets. However, the decline was approximately 7.5% over the last 24 hours, with ZEC trading around $570. The asset is up 60% over the past month and nearly 970% over the past year. WLFI’s 8% dip added to the token’s recent struggles, having reached a new all-time low in late April after a 16% single-day crash. The token has also faced a controversial lock-up proposal, a lawsuit from Tron’s Justin Sun, and ongoing scrutiny over its ties to the Trump family.
Other Tokens Show Gains
Despite the losses, some tokens showed positive performance over the week. NEAR was up more than 55% over seven days, trading around $2.50, although it declined nearly 8% on Tuesday. Hyperliquid’s HYPE token also saw gains, increasing 25% according to Santiment’s data. RAIN was the week’s standout performer, reaching an all-time high of around $0.012 on Tuesday, with a weekly increase of almost 55% and a 24-hour increase of over 44%.
Market Outlook
Santiment’s data indicated that bearish expectations have been building for about 10 days. The firm noted that this collective caution has historically preceded price recoveries, as markets often move against the prevailing sentiment. However, traders will be watching to see if this pattern holds, especially with Bitcoin remaining below $77,000 and struggling to break above its 200-day moving average near $80,000.
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