The altcoin market continues to struggle, and the latest data show the recovery is still far from convincing. According to CryptoQuant, nearly 84% of altcoins listed on Binance are now trading below their 200-day moving average, showcasing one of the longest periods of weakness the market has seen in years.
While sentiment remains bearish, some analysts think the current slowdown could eventually create selective buying opportunities.
Altcoins Stuck in an Extended Downtrend
CryptoQuant analyst Darkfost says altcoins have been among the biggest casualties of the current market cycle. Several attempts to regain momentum have failed, keeping prices under pressure for nearly eight months.
The 200-day moving average is widely used to measure a long-term market trend. With 84% of Binance-listed altcoins trading below this level, Darkfost believes the market remains firmly in bearish territory.
He also pointed out that TOTAL3, the combined market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum, recently closed below its own 200-day moving average on the weekly chart, further confirming the weakness across the broader altcoin market.
According to CryptoQuant, this is now the second-longest altcoin slump since 2020, trailing only the previous bear market, where similar conditions lasted around ten months.
Bitcoin Still Driving Altcoin Performance
Darkfost noted that altcoins have remained highly correlated with Bitcoin throughout this cycle, making it difficult for most projects to outperform independently.
Although the market still looks weak, he added that similar periods have historically created medium-term investment opportunities. However, unlike previous cycles where almost every altcoin rallied, this market demands much more careful token selection.
Some Analysts See Signs of Opportunity
Not everyone shares the same sentiments that the current weakness will last much longer.
An expert has compared today’s setup with 2022, noting that many major altcoins, including Ethereum, Cardano, Litecoin and BNB Chain, actually bottomed several months before Bitcoin reached its final low after the FTX collapse.
He argues the final Bitcoin sell-off in late 2022 was largely driven by forced liquidations from FTX-related failures, something that may not repeat this cycle.
Bitcoin holding around the $60,000 level, even with occasional dips into the $50,000 range, could eventually prove to be a strong long-term support zone.
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