Altcoins remain under severe pressure after CryptoQuant analyst Darkfost said 84% of the market is trading below its 200-day moving average.
Key Points:
- Darkfost said 84% of altcoins are below their 200-day moving average, signaling broad underperformance.
- The altcoin market, excluding Ether (ETH), has confirmed a weekly close below that level.
- Analysts remain split, with some seeing a medium-term opportunity and others pointing to continued market weakness.
Altcoin Market
Darkfost said Tuesday that altcoins have been the hardest-hit part of the bear market, with most tokens now in what he called a “state of total underperformance.” He said every attempt at a momentum recovery has failed, while altcoin market capitalization excluding Ether continues to slide.
The weakness has lasted about eight months, making it the second-longest stretch of altcoin underperformance since 2020. Darkfost described it as a prolonged stagnation period across most altcoins, one that is pushing investors to their limits.
The broader crypto market is down about 51% from its peak, with total capitalization now near $2.15 trillion. Large-cap tokens have fared better than smaller names, but the damage remains deep.
BNB (BNB), XRP (XRP) and Solana (SOL) are down between 60% and 75% from their highs. Many lower-cap altcoins are down between 80% and 90%.
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Analyst Outlook
Darkfost still said such periods have historically created medium-term opportunities, though he warned that finding them now requires stricter asset selection than in earlier cycles. That view contrasts with the broader market mood, which remains cautious after months of failed rebounds.
The top three altcoin season indexes sit between 48 and 51 out of 100, a neutral reading. Permabull analyst Sykodelic said Monday that “things are shaping up very well for altcoins,” despite what he called their “soul-destroying performance” in recent years.
Technical analysts also pointed to the one-week MACD moving into positive territory for the first time in more than two years. They said the setup resembles the 2020 cycle bottom, when altcoins began to stabilize after a long drawdown.
A few altcoins, including Solana, Hyperliquid (HYPE) and Zcash (ZEC), posted small gains Tuesday. Most others remain near bear-market lows.
Bitcoin (BTC) briefly reclaimed $60,000 before falling back below that level during Tuesday’s Asian session. Ether also moved above $1,600 after Bitmine’s latest purchase, then slipped back to $1,590.
Those reversals show why the latest altcoin weakness matters. The market has seen repeated recovery attempts in recent months, but each has faded before confirming a broader change in trend.
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