The price for popular %Cryptocurrencies XRP (CRYPTO: $XRP) and %Dogecoin (CRYPTO: $DOGE) have each fallen as much as 15% in the last 24 hours amid a sharp reversal in altcoins.
Volatility spiked during Asian trading, pushing prices down for altcoins that generally refer to all cryptocurrencies other than the two largest, %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH).
XRP, Dogecoin and %Cardano (CRYPTO: $ADA) are all down substantially as selling pressure mounts.
At the same time, Bitcoin’s price has pulled back 3% and Ethereum’s price has fallen 7% in 24 hours as traders and investors appear to be taking profits after a big run in cryptocurrencies.
Bitcoin had risen to an all-time high of near $104,000 U.S. and Ethereum breached the $4,000 U.S. level in the past week, leading to a run in altcoins as well.
But now, the market capitalization of cryptocurrencies has dropped by 6.5%, the largest 24-hour decrease since October of this year.
Analysts say the current selling pressure is being driven by an overheated market after a strong November rally.
Some analysts are warning that cryptocurrency traders appear to be over-leveraged, which could exacerbate the selling pressure in coming days.
Leverage refers to debt and loans that traders and investors takeout to buy securities, including cryptocurrencies.
A liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to the trader’s inability to meet the margin requirements or repay their loans.
The price of Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $97,500 U.S., having risen 120% on the year.