SOL, DOGE, XRP Prices Drop by an Average of 8% over Bitcoin Pullback – Is Altcoin Season Over Before It Even Began?

Over the past week, key altcoins such as Solana, Dogecoin, and XRP have experienced significant price declines. According to CoinMarketCap, SOL saw its value drop by 8.28%, DOGE fell by 12.80%, and XRP decreased by 4.27%. These declines reflect a broader trend of weakness in the altcoin market, raising concerns among investors about the overall momentum of digital assets. Is there still a chance for an altcoin season to emerge?

Bitcoin and Ethereum Show Relative Stability

In contrast to the declines in altcoins, Bitcoin (BTC) and Ethereum (ETH) have shown relative stability during the same period. BTC recorded a decrease of 3.15% this week, pulling back from its recent peak. However, it managed to hold above the support level of $105,000, making this decline a correction within market expectations, while ETH rose by 1.68%, remaining up nearly 40% over the past month, buoyed by optimism following a recent network upgrade. This divergence highlights a shift in market dynamics, where the broader altcoin market struggles while major cryptocurrencies maintain their ground.

Strahinja Savic, head of data analytics at crypto advisory FRNT Financial, highlighted that sluggish lending rates on DeFi platforms and low trading volumes for perpetual futures contracts on Bitcoin and Ethereum are clear indicators of a lack of appetite for riskier, retail-driven trading activities in the crypto space. He described the current market sentiment as "risk-off," attributing it to macroeconomic instability spilling over into the crypto sector.

Savic elaborated that the market is experiencing sharp sell-offs accompanied by a complete reset of risk appetite, highlighting the significant drop in speculative interest across the crypto space.

Altcoins: It’s Not Time to Lose Hope Yet

However, some analysts have offered a different perspective on the outlook for altcoins. On June 2, a prominent Korean analyst shared insights on CryptoQuant's platform, stating, "As the cycle approaches its final stages, Bitcoin's dominance is likely to decrease, and altcoins may see steeper rises than in previous patterns." This viewpoint suggests that while current data paints a bleak picture for altcoins, there may still be room for a significant rally as market cycles evolve.

Solana, Dogecoin, and XRP Are Trading Lower Due to Mounting Market Pressures

The recent short-time declines in Solana, Dogecoin, and XRP can be attributed to several factors.

First, the Trump administration's tariff policies have consistently buffeted markets. These altcoins have trailed behind Bitcoin as global trade tensions and macroeconomic uncertainties weigh heavily on investor sentiment.

Second, weak retail demand has further exacerbated the situation, as evidenced by the low trading volumes and subdued activity in the DeFi space. The market remains in a cautious state, hesitant to chase higher prices even after Bitcoin's institutionally driven rally to new highs. Against this backdrop, both SOL and XRP lack significant bullish catalysts, with trading activity appearing sluggish. Meanwhile, DOGE, as an established memecoin, has not seen any fresh waves of enthusiasm and has been further impacted by the waning global influence of Elon Musk, contributing to its sharper decline.

The Possibility of an Altcoin Comeback

While the current market conditions appear unfavorable for altcoins, the potential for a shift in dynamics remains. If Bitcoin's dominance were to decrease following potential institutional sell-offs and profit-taking, altcoins could experience a resurgence. For now, however, the market remains in a state of flux, with investors closely monitoring macroeconomic developments and market signals.