The digital currency ecosystem is fast receding in what appears to be an unexpected flash crash engulfing the market. The combined digital currency is down by 1.52% to $1.07, fueling the paring of gains even from coins that started the new week off on a mildly bullish note. With the current switch in momentum, Shiba Inu (SHIB), XRP and Cardano (ADA) appear to be the biggest hit altcoins today.
At the time of writing, Shiba Inu is changing hands at a price of $0.00000693, down by 3.65%, per data from CoinMarketCap. XRP has also taken a deep hit with prices dropping as low as 4.04%. With the current growth outlook, the coin has now lost its support at $0.5 with the price now pegged at $0.4992.
Cardano is in no way faring better as the bears have overpowered the bulls, dragging the price to a weekly low of $0.2516 atop a 5.48% drop. By comparison, Bitcoin (BTC), the industry benchmark, is down by just 1.23% to show the extent of the sell-off these altcoins are experiencing at press time.
Why market sell-off?
Market sell-offs and the accompanying liquidations are not uncommon in the digital currency ecosystem, but the causative factors typically differ.
With global macroeconomic factors under intense strain at the moment, the U.S. Dollar index (DXY) has soared above 106.50, placing fresh pressure on Bitcoin's outlook. While the current state of the market has been tagged a unique entry point for some whales, the timeline for the market to hit a bottom will go a long way to determine how fast the recovery will be overall.
In the meantime, the trio of SHIB, ADA and XRP will be relying on their individual fundamentals to power their recoveries in the near term.