rewrite this title Ethereum and XRP lead $976 million liquidation wave as altcoin rally pulls back

Major altcoins, including Ethereum and XRP, have taken a step back following a week of strong upward momentum. The broader crypto market is flashing red today as top assets face significant resistance after their recent surge.

Data from CryptoSlate shows that most of the top 10 cryptocurrencies by market capitalization are trading lower. Ethereum dropped by 2%, while XRP led losses with a sharp 10% decline. Other altcoins such as BNB, Solana, Cardano, Dogecoin, and Tron each recorded losses of over 4%.

Meanwhile, Bitcoin stood out as a rare gainer, posting a modest 0.26% increase. Stablecoin-linked tokens like USDT and USDC remained steady and unaffected by the market downturn.

Vincent Liu, Kronos Research’s Chief Investment Officer, told CryptoSlate that the market pullback was caused by the unwinding of leveraged long positions, which triggered a cascade of liquidations.

He added:

“[The market’s] thinning liquidity, shallow order books, and sharp volatility are amplifying the downside pressure.”

As a result, the total altcoin market capitalization fell below $1.5 trillion for the first time in a week, according to CoinMarketCap data. Meanwhile, the Altcoin Index dropped to 34, its lowest reading in several weeks, highlighting a broader market cooldown.

Still, sentiment among traders remains largely optimistic. Data from Coinalyze shows that more than 70% of traders in the top 10 altcoin markets maintain long positions, signaling ongoing belief in a potential rebound.

Valentin Fournier, Lead Research Analyst at BRN, said:

“Despite near-term weakness, the underlying structure remains bullish. Corporate demand continues to increase, and the reduced FTX repayment burden eases one of the market’s key downside risks.”

$976 million in crypto liquidations

The sharp market correction triggered a significant wave of liquidations. CoinGlass reports that over $976 million in positions were liquidated, affecting more than 316,000 traders.

Long traders, those betting on price increases, bore the brunt of the damage, losing $840 million. Short positions accounted for the remaining $135 million in losses.

Ethereum traders were hit the hardest, with liquidations totaling around $200 million. XRP followed with $115 million in losses. Other altcoin traders collectively saw $177 million wiped out.

Meanwhile, Bitcoin traders faced comparatively modest losses of $84 million.

The largest single liquidation event occurred on Binance, involving a $2.96 million long position on the BTC/USDC pair.

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