Altcoins are facing a crucial test after the broader crypto market experienced a sharp selloff triggered by leveraged liquidations. Ethereum, the second-largest cryptocurrency, slipped below the $4,200 level, signaling weakness across the sector. Meanwhile, Solana and several other major altcoins shed more than 10% of their value within hours, underscoring the speed and intensity of the correction.

This wave of liquidations has fueled debate among investors and analysts about whether the market is entering a deeper corrective phase or simply resetting before another leg higher. With billions of dollars wiped from altcoin valuations in a single session, the event has heightened uncertainty and left traders on edge.

Top analyst Maartunn highlighted that the Altcoin flush accelerates, pointing to the scale of liquidations as evidence that overleveraged positions are being forced out of the market. While painful in the short term, such resets are often viewed as healthy for long-term price stability, flushing out excess speculation.

Altcoin Open Interest Wipeout

According to data shared by top analyst Maartunn, altcoins faced one of their most severe flushes in months as $8.0 billion in open interest was wiped out in a matter of hours. By comparison, Bitcoin saw a much smaller reduction of around $1.5 billion, highlighting the disproportionate impact the selloff had on altcoins. This means that traders, many of whom were highly leveraged, bore the brunt of the liquidation event.

The scale of the wipeout is tel

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Author: Sebastian Villafuerte