Traders focus on hot altcoins as Bitcoin pulls back

Despite Bitcoin's (CRYPTO:BTC) pullback below $93,000, altcoins like Sandbox (CRYPTO:SAND), Stellar (CRYPTO:XLM), and Ether (CRYPTO:ETH) are capturing significant attention among traders, according to Santiment.

Santiment’s on-chain analytics revealed that while Bitcoin experienced a decline on November 25, traders have shifted focus to specific altcoins showing potential.

Discussions around SAND highlight a resurgence in metaverse-related investments, driving confidence in the token’s performance.

“Growing confidence among investors in SAND and related tokens is evident,” the platform note.

Stellar (XLM) has drawn interest, particularly linked to recent political events in Korea.

Social media discussions emphasise price surges and market analysis regarding the token.

Similarly, Ether (ETH) has been a focal point due to its performance and potential to outperform other large-cap cryptocurrencies under favorable market conditions.

Santiment’s tracker, which scans platforms like X and Telegram for trending tokens, reported that altcoins like Pleasure Coin (CRYPTO:NSFW), Tornado (CRYPTO:TORN), and Axie Infinity (CRYPTO:AXS) have also seen significant spikes in social mentions over 24 hours.

These discussions often reflect speculative interest and bullish sentiment.

Despite the enthusiasm surrounding altcoins, the broader market has faced mass liquidations, with over $518 million in crypto positions wiped out in the past day, according to CoinGlass.

Long positions accounted for $389 million of these losses, reflecting heightened volatility in the market.

While some traders remain optimistic about the altcoin market, others expressed caution.

"This has been the most challenging bull market altseason I think I've experienced," remarked cryptocurrency trader Eugene Ng Ah Sio, highlighting the difficulties in predicting capital flows and market movements. 

At the time of reporting, the Bitcoin (BTC) price was $94,781.88.