Unusual Altcoin Rotation: SXP and TWT Move in Opposite Directions
The cryptocurrency market has witnessed an unusual altcoin rotation, with SXP and TWT moving in opposite directions. According to Binance spot market data, Solar’s SXP fell 13.02% in 24 hours, while Trust Wallet Token (TWT) gained 10.5% after recovering significantly from its intraday low. This unexpected movement has raised eyebrows among traders and investors, as it breaks the usual altcoin rotation rhythm.
Other altcoins, such as API3, ACA, BIFI, and LAYER, also experienced a similar trend, surging and then selling off, resulting in losses of 10-20% in a flat exit liquidity market. This “wick up then fade” behavior is typical of exit liquidity in a market turning back to the majors. The Binance Spot data shows a 24-hour high around 0.0666 USDT and a low around 0.0608 USDT, indicating an intraday range of 9-10%, which is elevated but not extreme for a small cap.
TWT’s Recovery and SXP’s Decline
TWT’s recovery can be attributed to spot buyers defending wallet-linked exposure, despite the token being hit by a security crisis and profit-taking. The short-term sentiment is bearish after a Chrome extension exploit, despite good fundamentals and new supply plans. On some trackers, the spot price is around $0.78 to $0.80, a daily loss of about 6% and a drop of about 27% in the last month.
In contrast, SXP is selling off in dollar terms after a 13% daily decline in thin Binance spot books, which typically translates into underperformance compared to a strong BTC backdrop. The current spot price is hovering near 0.064-0.065 USDT and is in the lower half of the daily range, signaling that sellers are in control but there is no capitulation wick yet.
Outlook for New Year’s Eve
The base case scenario suggests that BTC dominance will either continue or increase into the New Year, causing SXP, TWT, and other altcoins to underperform BTC pairs. However, a tactical exception may occur if TWT achieves a short-term increase due to the US dollar’s predicted 10-15% rise by December 31st. Unless BTC stalls or corrects, even this move will likely only stabilize BTC’s underperformance rather than reverse it.
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