The self-perpetuating cycle has gone in reverse and it is clear now that the majority of holders were not willing to hold it for long term - i.e. they were only holding it for ST gain. Once the prospects of ST gain started to evaporate, the buyers disappeared as well.
Price drops were not only the result of selling, but an unwillingness of buyers to step in at market prices - they were only buying on much lower dips. This hurts the value for LT holders, as a lack of new buying activity has the net effect of depressing the price.
ETH and XRP are not getting the 'fundamental' boost from their ability to change things in finance, and it's clearer now (given BTC's resilience) that in the world of crypto, perception of status is more highly valued than potential of the coin, at least for now.
Going forward, the impetus for the coins remain to be seen translated into prices, and with the lack of hype, price gains will be difficult. It thus remains in the speculative and volatile category of assets, more fit for trading ST and too much uncertainty to be held LT.
This half week has shown a continued shift in the narrative.
For the past 2-3 months it was USD buying which led the way, leading to consistent across-the-board weakness in all the majors against USD, and affecting EM currencies.
The past week saw a shift to safe haven currencies - pushing up the JPY and mildly the CHF. This week has played out to that tune so far, and it could represent a shift in sentiment that may last longer than warranted.
So although fundamentals for the USD have not changed (still supportive), the risks to USD longs are now materializing, leading to higher volatility and uncertainties in the short term - all the more important to have proper risk management in place.
The next opportunity might be in USD longs again when the situation settles down, but against currencies which have risen the most in this bout (likely the JPY). The other majors like EUR, CHF and GBP have seen their prices depressed enough already. There may be opportunities in AUD and NZD too.