84% of Altcoins Underperform Below 200-Day Average

The situation for altcoins looks grim. As many as 84% of all altcoins traded on Binance are currently trading below the 200-day moving average. This has been the case for almost eight months, making it the second-longest period of underperformance since 2020, according to data from CryptoQuant.

Altcoins are available at Bitvavo and Bybit.

Altcoins suffer the most under current market conditions

Analyst Darkfost points out that altcoins are the segment hit by far the hardest in the current bear market. Every attempt to regain momentum immediately fails, and the Total 3, the index tracking total altcoin market capitalisation excluding Ethereum, continues to decline. The weekly close below the 200-day moving average has now been confirmed.

The chart shared by Darkfost covers all altcoins available for spot trading on Binance, the exchange with the highest trading volumes worldwide. It shows that roughly 84% of those coins are completely underperforming relative to that technical threshold. Moreover, the data indicate that altcoins in this cycle remain strongly correlated with Bitcoin’s price movements, which is currently trading around $59.325, down 0.7% over the past 24 hours.

Second-longest underperformance streak since 2020

By comparison, the only comparable period occurred during the previous bear market, when underperformance lasted approximately ten months. The current stretch of almost eight months thus comes perilously close. Investors are being pushed to the limit as a prolonged stagnation persists across nearly the entire altcoin market.

Yet Darkfost also sees a silver lining. Although this confirms the bearish trend, such periods have historically also offered opportunities over the medium term. He does note, however, that selecting promising projects in this cycle requires considerably more discipline and care than in earlier cycles. Anyone positioning for an altcoin recovery would therefore be wise to be far more critical when choosing specific coins.