Analyst Signals "Warning Signs" for Altcoins

The altcoin market is reportedly entering a "critical phase" as exchange deposits rise and bearish trends appear, according to on-chain analyst Darkfost.

Since June, the Total2 metric, which tracks the market capitalization of altcoins, including Ethereum, has seen an influx of $371 billion, marking a 45% increase in just a few months.

However, the current Relative Strength Index (RSI) for this metric has fallen into bearish territory, signaling potential instability in growth.

Darkfost also pointed to significant changes on Binance, noting that in August, 80% of altcoins were trading below their 200-day moving average. This figure has now dropped to 13%, with an estimated 87% of coins having entered a bullish phase.

"This shift indicates a form of euphoria that has engulfed altcoins. However, historically, such dynamics are unstable and tend to fade over time," the analyst warned.

Another concerning indicator is the increase in altcoin deposits on exchanges, reaching levels not seen since October 2025. The weekly average of deposit transactions has surpassed 22,700 on Binance and 8,300 on Coinbase, with an additional 32,000 on other platforms.

Additionally, Bitfinex has noted that Bitcoin is currently caught in a tug-of-war between bullish and bearish trends.