Altcoin Market Shows Early Warning Signs of Weakening Momentum
- Altcoin market capitalization, including Ethereum, has risen by 45% since June, adding over $371 billion.
- Approximately 87% of altcoins on Binance are now trading above their 200-day moving average, up from just 20% in August.
- Weekly average deposit transactions for altcoins exceeded over 22,700 on Binance and about 8,300 on Coinbase.
- The current rate of market growth has slowed to approximately 12.5% over the last month after a peak of over 32% earlier in September.
- A bearish divergence in the relative strength index (RSI) for Total2 suggests potential loss of momentum in the altcoin market.
Recent data indicates that while liquidity has been flowing into altcoins since July, there are emerging warning signs such as increased exchange deposits and a bearish RSI divergence that could indicate weakening momentum.
With a significant rise in altcoin market capitalization by over $371 billion since June, caution is advised as market conditions may be shifting.(Source)
