CryptoQuant: 84% Of Altcoins Remain Below 200-Day Average As Market Weakness Extends To Eight Months

CryptoQuant researcher Darkfost published the new research, indicating that a large majority of altcoins continue to trade below their 200-day moving average (200-DMA), highlighting the prolonged weakness across the broader altcoin market.

According to the analysis, around 84% of altcoins listed for spot trading on Binance are currently trading below the 200-DMA, a key technical indicator widely used to assess long-term market trends. This period of underperformance has persisted for nearly eight months, making it the second-longest stretch since 2020. The only longer period occurred during the previous bear market, when similar conditions lasted for about 10 months.

The report also notes that altcoins have remained closely correlated with Bitcoin’s price movements throughout the current market cycle. Despite several attempts to regain upward momentum, the Total3 index, which measures the market capitalization of cryptocurrencies excluding Bitcoin and Ethereum, has continued to decline and has now recorded a weekly close below its 200-day moving average.

Altcoin Weakness Persists as Market Conditions Remain Challenging

Darkfost stated that the prolonged weakness has created a challenging environment for investors, while noting that similar market phases have historically preceded medium-term opportunities. However, the researcher added that identifying potential outperforming assets has become more demanding than in previous cycles due to increased market selectivity.

At the time of writing, Bitcoin was trading at $59,420, down 0.96% over the previous 24 hours after moving between an intraday high of $60,341 and a low of $59,008. Data from CoinMarketCap showed the total cryptocurrency market capitalization at $2.06 trillion, down 0.34% over the day, while 24-hour trading volume increased 47.05% to $79.22 billion. Bitcoin’s market dominance stood at 57.86%, a decline of 0.26% during the same period.

Ethereum was trading at $1,588 at the time of writing, posting a 0.72% gain over the previous 24 hours while remaining down 6.03% over the past seven days. Several major altcoins recorded modest gains despite the broader market weakness. Solana rose 2.18% over the past 24 hours to trade at $73.88 and remained up 4.99% over the previous week. Hyperliquid increased 4.60% to $65.50, while Zcash gained 4.07% on the day to $398.84, although it remained down 6.63% over the past seven days.

Meanwhile, market analyst Michael van de Poppe said the overall altcoin market capitalization has returned to levels seen before nearly 900 days of gains. He stated that the market was unable to surpass its previous all-time high and has since retreated toward the breakout zone established in early 2023, resulting in almost three years without net gains for many altcoin investors.

Van de Poppe has previously commented on extreme market conditions affecting major digital assets. In May, he noted that Ethereum’s daily relative strength index had fallen to its lowest level on record. Earlier this year, he also observed that artificial intelligence companies Anthropic and OpenAI had postponed their planned initial public offerings until 2027.

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