The Crypto Industry Faces Capitulation

The crypto industry is experiencing capitulation, as most top projects that started the week positively, including Stellar (XLM), have commenced shedding their gains. The XRP rival has seen its price drop by 1.76% in 24 hours to $0.2873, according to CoinMarketCap data. While the reason for this sudden slump remains unknown, the coin is flashing signs of erasing its seven-day gains.

Stellar Volatility and Pressured Metrics

Stellar’s current outlook has forced it to take on underdog status against XRP. While Stellar has retained just 0.68% of its gains in the trailing seven-day period, XRP is still up 7.27% within the same timeline.

Some of the coin’s metrics have dropped in line with the price of XLM. The trading volume, for instance, is down by 26.9% to $261,476,049.98, indicating reduced market participation.

Beyond the volume, Stellar has witnessed intense volatility in the past few hours. While the 24-hour price recorded a drawdown, the hour preceding press time saw the coin jump by approximately 1.2%.

In what appears to be a rebound following its flipping by Toncoin over the weekend, the ongoing XLM breakout might signal that more selling off is ahead.

Altcoin Market Seeing Uncertainty

The unexpected drawdown in the price of XLM reflects the state of most altcoins in the market. As of press time, Ethereum has also dropped by 2.35% in 24 hours, falling below the $2,000 support level.

Solana is also experiencing a mild drawdown with a 1.1% loss to $130. When Ripple Labs CEO Brad Garlinghouse revealed the SEC’s lawsuit dismissal, these profiled altcoins skyrocketed to their highest level.

While it remains unknown if the current correlation is a signal that more price reversals are imminent, it proves that the much-sought-after altcoin season is yet to emerge.