According to Joao Wedson, CEO of cryptocurrency analysis company Alphractal, some altcoins in the market experienced a decline after their open interest rates suddenly jumped.
According to the CEO, Cardano (ADA), Litecoin (LTC), Sui (SUI), and TRUMP altcoins had the highest Liquidation/Open Interest ratio in the last 24 hours, meaning that a large amount of open interest in these altcoins was liquidated.
The analyst stated that this situation amounts to a “dead cat bounce” for these altcoins. A dead cat bounce is an unexpected price jump that occurs after a long and slow decline and usually just before another price drop.
On the other hand, Alphractal, who evaluated the rest of the cryptocurrency market, stated that some categories of altcoins are more resilient than others in the crypto market. He stated that memecoins and artificial intelligence projects have shown sharp declines in recent days, while altcoin categories such as layer-1 and payments have shown resistance. Analysts shared that as a specific category begins to gain momentum, all altcoins of the same type generally tend to rise together.
*This is not investment advice.
