Analyst: Altcoin frenzy shows first warning sign, upward momentum may be weakening

BlockBeats news, September 27: CryptoQuant analyst Darkfost posted that on-chain data suggests the altcoin market may be entering a more critical phase. Recently, altcoins have attracted substantial capital inflows. Since June 2026, Total2, which represents the total market capitalization of altcoins (including ETH), has absorbed over $371 billion in capital, growing 45% in just a few months.

This sudden surge in demand for altcoins is also reflected in the number of Binance-listed altcoins above their 200-day moving average. The 200-day moving average is an important indicator for measuring market trends. In August this year, approximately 80% of Binance altcoins were trading below their 200-day moving average, but that proportion has now dropped to 13%. This means that 87% of altcoins on the Binance platform have reversed their previous trend and entered a phase of upward momentum.

This shift indicates that a certain degree of euphoria is emerging in the altcoin market. However, from a historical perspective, such rallies are typically difficult to sustain and may eventually lose momentum. In addition, altcoin deposits to trading platforms have now risen to levels unseen since October 2025, which coincided with the previous market top. Binance's weekly average deposit transaction count has exceeded 22,700, Coinbase has surpassed 8,300, and other trading platforms combined total approximately 32,000.

Nevertheless, compared with the early stages of the previous bull market, the current scale of altcoin inflows to trading platforms remains relatively limited. Still, these signals warrant close attention, especially as Total2's RSI has recently begun to show bearish divergence, further suggesting that the upward momentum in the altcoin market may be weakening.