Altcoins, Bearish Sentiment for 10 Days...Has a Sell-off Begun?

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As the altcoin market experienced a simultaneous sharp decline, Zcash (ZEC), World Liberty Financial (WLFI), and Ondo Finance (ONDO) fell significantly, quickly shifting investor sentiment towards bearishness.

According to crypto media outlet CryptoPotato on May 27 (local time), a sell-off spread across altcoins in the cryptocurrency market on Tuesday. Zcash plummeted by 11%, marking the largest drop among major declining assets, while WLFI and Ondo Finance also recorded declines. CryptoPotato cited blockchain analytics firm Santiment, stating that crowd sentiment had turned bearish, and in the past, such trends have preceded price rebounds.

Santiment pointed out the declines of several altcoins, including Ondo Finance, Zcash, WLFI, and DeXe, via X (formerly Twitter) on that day. Ondo Finance experienced a decline immediately after the news of the death of its founder and CEO, Nathan Allman. The company announced that Ian De Bode, who had served as president for a long time, would take over as CEO. Ondo Finance traded around $0.41 and had risen by approximately 9% over the past 7 days.

Zcash plunged by 11% in a single trading day, but as of the time of writing, its 24-hour decline had narrowed to approximately 7.5%, with its price hovering around $570. CryptoPotato explained that considering Zcash had risen by 60% over the past month and approximately 970% over the past year, it is difficult to judge the overall trend based solely on a single day's decline. WLFI continued its difficult trend, falling by 8%. The token hit an all-time low after plummeting 16% in one day at the end of April and has been under scrutiny for controversial lock-up proposals, a lawsuit involving Tron (TRX) founder Justin Sun, and its alleged ties to the Trump family.

Not all altcoins declined. NEAR Protocol (NEAR) fell by approximately 8% on Tuesday but had risen by over 55% over the past 7 days, trading around $2.50. Hyperliquid (HYPE) also rose by 25% according to Santiment data. The most notable asset on a weekly basis was RAIN, which hit an all-time high of approximately $0.012 on Tuesday. RAIN had risen by approximately 55% over the past 7 days and over 44% over the past 24 hours.

In separate data, Santiment stated that bearish crowd expectations had built up for about 10 days. The firm explained that markets generally tend to move contrary to dominant crowd sentiment, and such collective caution has historically preceded price recoveries. However, CryptoPotato noted that Bitcoin (BTC) remains trapped below $77,000 and is struggling to break above its declining 200-day moving average near $80,000, so it remains to be seen whether the same trend will emerge this time.

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