The cryptocurrency market has witnessed new volatility this week, with altcoins being the most affected. While the price of Bitcoin remains stable near its all-time high, several top projects have lost significant value. Here is a look at the 5 worst-performing altcoins over the past 7 days:
Despite the decline, there are strong reasons to believe that these coins can rebound strongly when the price of Bitcoin breaks through its previous all-time high. Why Altcoin Crashes Before… Price Rises After This is a common trend in every cryptocurrency bull cycle: Bitcoin rises first, followed by altcoins. Traditionally, altcoins tend to lag behind the initial price surge of BTC. As institutional money flows into Bitcoin, retail investors chase lower-priced tokens with high potential for price increases—leading to altcoin season. Here is what usually happens: BTC surges → Capital flows into Bitcoin first. Consolidation phase → Traders take profits and switch to altcoin. Altcoin rises → High-risk assets like PYTH, IOTA, and EOS soar. This model has occurred in the cycles of 2017, 2021 and continues to occur in 2025. Market Context: What Does the Overall Altcoin Chart Tell Us? Let’s take a look at the chart of Total market capitalization of cryptocurrencies excluding Bitcoin (TOTAL2): The market capitalization is at 1.19 trillion dollars, higher than the important support level of 1.18 trillion dollars. The 50-day SMA is at 1.22 trillion dollars, indicating a resistance level but also the next target if a recovery occurs. RSI (14) is at 36.51, approaching oversold conditions—a typical reversal zone for altcoins.
The chart shows that we are at a critical point. The continuous recovery of TOTAL2 will signal that altcoins are preparing to move, potentially triggering a major recovery for tokens such as PYTH, IP, Sonic, IOTA, and EOS. Reasons for the Comeback of Each Altcoin 🔹 Price PYTH ( Pyth Network ) A leading oracle solution supported by major exchanges. After a decrease of 18.6%, it is currently near the long-term support zone. Keep an eye on the reversal with the recovery of the broader DeFi sector. 🔹 IP Price (Story Protocol) Decreased by 14.13%, but this Web3 IP platform is attracting attention. Still in the early stages with strong support from VCs. 🔹 S Price (Sonic, previously known as Fantom) The rebranding has caused confusion and this token has lost nearly 12%, but it remains one of the most efficient L1s. A recovery in Total2 could help this token increase in value rapidly. 🔹 IOTA price Down 10.63%, this OG token is still overlooked. With new smart contract capabilities and a focus on IoT, it is a potential altcoin with great upside potential. 🔹 Price of EOS Despite long-term skepticism, EOS still maintains a market capitalization of $1.1 billion and has dropped more than 10% this week. The next altcoin rally could push it above $1.00. Buy when the price drops today or wait? The retreat of Altcoin is a part of the game. But historically, deep declines like this often occur before explosive price increases — especially after Bitcoin reaches a new high. As the price of Bitcoin approaches $150,000 and the price of XRP is predicted to reach $3, the broader market is preparing to shift towards altcoins. And these five coins could just be the initial entries for the next major bull run.