More than half of altcoins on Binance above 200-day average

More than half of the altcoins on Binance are trading above their 200-day moving average again. That marks a turnaround after months in which 80% to 85% of altcoins were below that level. The shift followed announcements by President Trump on 19 August, which set off a broad recovery in the altcoin market.

In brief:

• Between 19 and 22 August, the total altcoin market value grew by $215 billion, an increase of more than 24% in three days.
• After months of quiet, 56% of the altcoins on Binance are again trading above the 200-day moving average.
• Analyst Darkfost warns that the market is overbought in the short term and could use a breather.

Trump announces major Bitcoin purchase and crypto legislation

On 19 August, Trump made a series of statements that set the crypto market in motion. He indicated that the US wants to purchase large quantities of Bitcoin and called on Congress to adopt the so-called Clarity Act. He also claimed that his administration has definitively ended the “war on crypto”.

Those announcements came at a time of thin trading volumes and exhausted selling pressure. This led to a rapid inflow of capital towards altcoins, causing a large part of the market to surge. Bitcoin recently saw a strong rally that led to the largest inflow at Binance since February.

56% of altcoins recover above key technical level

Between 19 and 22 August, the total market value of altcoins rose by $215 billion, an increase of more than 24% in three days. This lifted the so-called Total2, the combined market value of all crypto excluding Bitcoin, back above $1 trillion.

Mid and small caps in particular rose the most. Because these coins have the lowest market value, they are structurally the most sensitive to sharp price movements in both directions. On Binance, which offers a wide range of altcoins, the recovery is clearly visible in CryptoQuant data. After a quiet period that began in November, 56% of the altcoins on the platform are now trading above their 200-day moving average again, a technical level that indicates whether an asset is in a positive or negative trend.

Analyst sees early altseason signal, but warns of overbought market

Analyst Darkfost says that a recovery of this magnitude is historically an early sign of an altseason. Yet there is a caveat: in his view, the market is overbought in the short term and needs a breather.

He advises investors not to rush. If the momentum for altcoins remains strongly positive, he believes there will be plenty of new opportunities. Bitcoin currently stands at $77K, up 0.3% in the past 24 hours.