The crypto market experienced a sharp downturn on Friday, with Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) leading the decline. Over $635 million in liquidations rocked the market as traders rushed to exit long positions, prompted by shifting macroeconomic signals and the Federal Reserve’s latest interest rate stance.

Market Turns as Fed Freezes Rates Again

The Federal Reserve’s decision to hold interest rates steady at 4.25%–4.50% for the fifth consecutive time spooked investors, sending shockwaves through the crypto market. Traders had hoped for a more dovish tone amid ongoing economic uncertainty. Instead, the Fed’s inaction triggered a sell-off, especially among volatile altcoins.

Solana, Dogecoin, and Cardano, three of the most popular and heavily traded altcoins, were the worst hit, each tumbling roughly 7% in 24 hours. This sharp move downward coincided with a broader correction, though Bitcoin and Ethereum saw more moderate losses in comparison.

Altcoins Take the Biggest Hit

Altcoins have always exhibited greater sensitivity to market sentiment, and this latest episode reinforces that trend.

• Solana (SOL) dropped 7.3% in a single day
• Dogecoin (DOGE) declined by 6.9%
• Cardano (ADA) lost 7.1%

Despite the daily losses, all three coins are still in the green on a 30-day basis, indicating that this may be a short-term retracement rather than a long-term reversal.

Massive Liquidations Sweep the Market

According to data from CoinGlass, total liquidations across the crypto sector hit $635 million over the past 24 hours.

• $577 million came from long positions
• Only $58 million were shorts

This underscores the sudden shift in sentiment, as bullish traders were caught off guard by the downward swing.

Breakdown of Long Liquidations:

• Solana: $34.86 million
• Dogecoin: $18.37 million
• Cardano: $5.74 million

These figures reflect heightened leverage and risk exposure in altcoin futures markets, especially among retail investors hoping to ride bullish momentum.

Short Positions Dominate Futures

As long positions were wiped out, traders quickly pivoted to shorting the market.
The percentage of short positions surged above 51% for each of the top-three altcoins:

• Solana: 51.96%
• Cardano: 52.48%
• Dogecoin: 51.88%

This marks a significant shift in trader behavior, indicating caution and a hedging strategy to limit further downside risk.

Sentiment Cools, But No Panic Yet

The Crypto Fear and Greed Index fell from 62 to 57, signaling a moderate drop in market confidence. However, this metric still falls within the “Neutral” zone, suggesting that while traders are more cautious, widespread panic hasn’t set in.

Analysts believe this correction is healthy and necessary for sustainable growth. Many attribute the downturn to a mix of macro uncertainty, especially related to U.S. monetary policy and global trade tensions, and profit-taking after strong rallies in recent weeks.

Analysts: This Is a Healthy Reset

Despite the bearish headlines, many experts consider this correction a short-term setback.
According to analysts:

• The pullback is not a structural breakdown
• Long-term fundamentals for Solana, Dogecoin, and Cardano remain intact
• Traders are merely adjusting to new macroeconomic realities

With over $6 billion in realized gains from Bitcoin alone over the last month, a round of profit-taking was likely. The Fed’s refusal to signal imminent rate cuts only reinforced the need for investors to lock in profits before further uncertainty.

30-Day Gains Intact

Interestingly, despite the day’s dramatic dip, the 30-day performance of these altcoins tells a more optimistic story.

• Solana is still up over 12%
• Dogecoin has gained 9%
• Cardano is higher by nearly 8%

This suggests that Friday’s losses are not enough to reverse the broader uptrend, although they may mark the beginning of a temporary consolidation phase.

What Comes Next?

The crypto market now faces a critical juncture:

• Will cautious investor sentiment deepen, or stabilize?
• Will altcoins regain their momentum as macro clarity improves?
• Could this correction be an opportunity for long-term investors to re-enter at better prices?

Traders are advised to watch U.S. economic data and upcoming Federal Reserve commentary closely, as these macro factors are likely to set the tone for crypto prices in the coming weeks.

Conclusion

The latest crypto market downturn, led by Solana, Dogecoin, and Cardano, reflects short-term volatility sparked by macroeconomic hesitation and shifting investor sentiment. With $635 million in liquidations, primarily from long positions, the event marks a sobering reminder of the risks in highly leveraged markets. Yet, with long-term gains still intact and sentiment holding in the neutral zone, many analysts interpret this pullback as a healthy reset, not a collapse. Cautious optimism remains as the market recalibrates for its next move.

🔺 Top 3 Gainers (24h Performance)

1. TREE (TREE) – $0.5960 (+18.80%)
TREE surged following renewed investor enthusiasm in sustainability tokens and green blockchain initiatives. Recent partnerships with eco-focused platforms and carbon offset programs drove a fresh wave of interest, pushing prices higher.

2. SC (SC) – $0.003503 (+7.65%)
SC climbed on rising anticipation of its decentralized storage upgrades. The upcoming rollout of more efficient file distribution protocols and increased developer engagement lifted investor confidence, leading to strong intraday buying.

3. MEME (MEME) – $0.0019 (+7.24%)
MEME spiked as social media hype and influencer endorsements reignited retail trader interest. Its integration into a new NFT platform created bullish momentum, with meme-coin enthusiasts fueling short-term gains.

🔻 Top 3 Losers (24h Performance)

1. RESOLVE (RESOLVE) – $0.1771 (−12.37%)
RESOLVE saw steep losses as regulatory concerns surfaced around its governance model. The token faced heavy sell pressure after key developers paused updates and market liquidity dried up.

2. SOPH (SOPH) – $0.3090 (−11.30%)
SOPH pulled back sharply following a post-rally cooldown. After hitting recent highs on AI-related optimism, profit-taking and broader market corrections led to a downturn, despite no major negative developments.

3. INIT (INIT) – $0.3916 (−12.84%)
INIT declined amid uncertainty about its upcoming network upgrade. Delayed roadmap timelines and lack of communication from the team contributed to waning investor confidence and gradual sell-offs.