Overview
The cryptocurrency market entered a pronounced pullback on Tuesday, extending a two-day correction that saw broad losses across major token categories. Bitcoin maintained support near the $115,000 level, showing limited intraday volatility despite selling pressure elsewhere in the market. Total market capitalization declined in line with a rotation out of higher-risk segments such as GameFi and meme tokens.
Sector Performance
The GameFi sector was the heaviest hit, with sector-wide tokens down by an average of 4.41%. Notable declines were recorded for Gala (GALA) and Form (FORM), both of which fell by more than 5%. Broad meme token weakness was also evident, as Dogecoin (DOGE) relinquished over 4% of its value in the past 24 hours, while Pepe (PEPE) and Pudgy Penguins (PENGU) declined by 7% and 6.5%, respectively.
Bitcoin Price Action
Bitcoin traded in a tight range between $114,700 and $115,350, testing support levels around $115,000 before modest rebounds. On-chain indicators suggested neutral momentum, with Relative Strength Index (RSI) hovering near 50. Long-term holder accumulation remained intact, but short-term traders have reduced leverage exposure amid broader market uncertainty.
Ethereum and Altcoins
Ethereum underperformed, falling 1.93% to trade near $4,500. Network activity metrics showed a decline in daily active addresses, which may have contributed to lower demand for ETH. Other large-cap altcoins such as Solana (SOL) and Cardano (ADA) slipped by 0.48% and 0.70%, respectively, as investors awaited clearer directional cues.
Market Drivers
Traders cited several factors for the pullback: profit-taking following recent gains, upcoming U.S. Federal Reserve policy announcements, and technical resistance at key levels for multiple tokens. Macro uncertainty around interest rate decisions has heightened risk-off sentiment, with some participants reallocating to traditional assets ahead of central bank commentary.
Looking Ahead
Technical analysts will monitor Bitcoin’s ability to hold above $115,000 and Ethereum’s support at $4,480. A sustained breach below these levels could prompt deeper corrections. Conversely, renewed buying interest in large-cap tokens may set the stage for a market rebound, particularly if broader risk assets stabilize following central bank guidance.
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