Altcoins Including Ethereum, Dogecoin Slip as Market Cools Off

Altcoins including Ethereum and Dogecoin retraced on Tuesday as crypto markets pulled back from the euphoric highs seen just days after President Trump signed landmark stablecoin legislation into law.

Among the top 20 cryptocurrencies, Hedera (HBAR) led losses, dropping 5.2% on the day, followed by Hyperliquid (HYPE), down 5.1%, according to CoinGecko.

Ethereum (ETH) declined 2.6%, Chainlink (LINK) fell 3.3%, and Dogecoin (DOGE) dropped 1.5% in the past 24 hours. Other major altcoins followed suit, with Stellar (XLM) down 4.1%, Cardano dropping 2.8% and Sui (SUI) falling 2.8%.

The market correction comes just one week after XRP soared to an all-time high above $3.41, surpassing a seven-year record that analysts attributed to renewed institutional interest following Trump’s crypto-friendly policy moves.

“Healthy correction” following euphoric gains

The pullback “appears to be a healthy correction following strong double-digit gains in recent weeks,” Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt.

“After such rallies, it’s common to see short-term profit-taking, especially while momentum indicators like the daily RSI are showing these assets reaching overbought levels,” he said.

The analyst noted that “rather than signaling weakness, such corrections could be necessary to solidify the foundations for a sustained rally,” pointing to ETH’s declining selling pressure and XRP’s formation of a “Golden Cross” pattern as bullish technical indicators.

Arthur Azizov, founder of B2 Ventures, pointed to XRP’s exceptional momentum prior to Tuesday’s pullback, saying “that the rally has been completely uninterrupted — not even a minor pullback.”

“At this stage, it would actually be quite normal to see a bit of a correction,” Azizov told Decrypt. “The ideal zone for it looks to be around $2.64, which also lines up with a strong support level.”

“As long as XRP doesn’t drop below $1.90, the overall trend is still bullish, which is important to keep in mind,” he added.

Post-euphoria “hangover” amid regulatory catalysts

Bitcoin, meanwhile, showed resilience as it nudged a 1% gain to over $119,000, after pulling back from last Monday’s record high of $123,000, according to CoinGecko.

Market watchers describe it as a natural pause following last Friday’s signing of the GENIUS Act, America’s first major piece of crypto legislation that establishes a regulatory framework for stablecoins.

“Following a week of euphoria driven by headlines, this pullback appears to be more of a hangover than a structural shift — a typical cooling off period in the absence of new catalysts,” Shawn Young, Chief Analyst at MEXC, told Decrypt.

Young noted that altcoin open interest is “approaching Bitcoin’s” – a dynamic that has historically coincided with market corrections when positioning becomes “too aggressive.”

The analyst also pointed to shifting market dynamics, saying “spot selling pressure, which was concentrated on Binance last week, has now expanded to Coinbase — another sign of derisking amid uncertain footing.”

Fed uncertainty adds market pressure

The correction also comes amid rising attention on Federal Reserve Chair Jerome Powell, who is set to deliver his final public address on banking regulation Tuesday before the Fed’s 10-day blackout period.

With markets pricing in just two rate cuts this year, according to CME’s FedWatch tool, Powell’s tone could be pivotal across crypto and traditional assets, analysts say.

“While markets still lean towards a September rate cut, currently priced at 56%, Powell’s tone could further influence risk sentiment,” Young said. “Therefore, with the news cycle slowing down and Powell in the public eye, risk management isn’t a choice — it’s the strategy.”

President Trump reportedly drafted a resignation letter for the Fed chair last week, with some analysts suggesting the president may name a “shadow” successor to pressure for faster rate cuts that typically boost risk assets like Bitcoin.