XRP, DOGE, SOL Lead Crypto Selloff, But Altcoin Season Still in Play if This Happens

Recent cryptocurrency market activity has cast doubt on the longevity of the ongoing altcoin season. While Bitcoin (BTC) experienced a relatively modest decline, other major cryptocurrencies suffered significant losses. XRP, Dogecoin (DOGE), and Solana’s SOL experienced the most substantial drops among the top 10 cryptocurrencies, each falling approximately 5% within a 24-hour period. Compared to their Wednesday highs, XRP and DOGE plummeted around 18%, while SOL decreased by 12%. The broader altcoin market also saw a correction; the CoinDesk 80 Index, tracking mid-cap tokens, lost 10% from its weekly peak.

This downturn follows weeks of significant capital flowing into smaller cryptocurrencies, fueling speculation about a full-blown altcoin season. Altcoin season is characterized by smaller, riskier tokens outperforming Bitcoin over an extended period. The CoinGlass Altcoin Season Index, measuring altcoin market outperformance against BTC, cooled from 59 on Monday (its highest since late January) to 41 on Friday. Despite the recent pullback, the overall altcoin market (excluding stablecoins) has nearly doubled in value since April, according to Coinbase’s head of research, David Duong.

Duong’s report attributes the current market correction to traders employing excessive leverage in altcoin investments. The Altcoin Open-Interest Dominance metric, which compares the value of altcoin derivatives contracts to Bitcoin’s, reached 1.6—a level historically preceding market shakeouts. A decrease in this ratio would signal a healthy reset, but otherwise, further corrections are likely.

For a sustained altcoin season, investors should monitor Bitcoin Dominance, which tracks BTC’s share of the total crypto market capitalization. This metric has fallen below its 200-day moving average for the first time since January 2025. A sustained dip below this average could strengthen the altcoin season narrative and has historically preceded extended periods of altcoin outperformance. However, Duong advises caution, suggesting investors wait for consecutive closes below this level before increasing altcoin exposure for a more prudent approach.