What's Behind the Decline of Leading Altcoins ADA, SOL, and ETH?

Overview of Altcoin Market Decline

The prominent altcoins Cardano (ADA), Solana (SOL), and Ethereum (ETH) are experiencing a downturn. This comes as the US dollar shows instability with traders speculating on a potential December Federal Reserve rate cut following a disappointing ADP jobs report indicating a weakening US labor market.

Market Analysis

The global cryptocurrency market capitalization has fallen below $3.50 trillion, shedding nearly $150 billion within 24 hours. Trading volumes are also declining, with the Fear & Greed Index dropping to 24, reflecting extreme fear.

Factors Impacting Cardano (ADA), Solana (SOL), and Ethereum (ETH)

Ethereum (ETH): ETH prices have decreased by over 4%, with ADA and SOL dropping more than 7% and 9% respectively in the last 24 hours. This trend follows the release of ADP jobs data showing an average weekly job cut of 11,250 in the US, highlighting a weakening labor market. The US dollar index (DXY) is near 99.50, as traders anticipate a Fed rate cut in December.

Spot Ethereum ETF Outflows: Spot Ethereum ETFs experienced a $107 million outflow on Tuesday, with no inflows recorded across the nine ETFs. BlackRock sold $19.8 million in ETH, exacerbating market concerns.

Solana (SOL) Struggles Despite ETF Inflows

Spot Solana ETFs witnessed $8 million in inflows on Tuesday, with total inflows surpassing $351 million over the past ten days. However, SOL prices fell below $155 due to broader market volatility and a 'death cross' formation in Bitcoin charts, suggesting further potential declines to $150.

Cardano (ADA) Faces Selling Pressure

ADA is trading at $0.56, below both the 50-MA and 200-MA on the daily chart. Whale selloffs have intensified due to a 'death cross' formation. Analyst Ali Martinez suggests Cardano must maintain $0.50 support to pave the way for a recovery to $0.70.