The crypto market has extended its decline over the past six months, with little evidence of a sustained recovery on the charts. With the market cap down nearly 45% from its peak above $4.27 trillion, the number of altcoins is now sitting near its all-time low.
This suppression has reduced the amount of stock invested in order to benefit from the recovery, placing higher in the smaller groups of indicators.
Altcoins reach beyond reach
According to the latest CryptoQuant reportabout 40% of altcoins have hit record lows or are now trading near those levels.
The decline was caused by a number of major issues, including concerns about rising prices linked to oil markets and rising tensions between countries in West Asia.
Compared to the previous cycle, the current situation is more complicated. During the last decline, about 38% of altcoins fell to or near their all-time lows before establishing a base and retracing to the upper levels. The current rate exceeds that level by 2%, indicating a strong depression in the market.
At the same time, the recession has also increased. The number of cryptocurrencies has increased to about 47 million, and about 44 million are focused on Solana, Base, and BNB. This proliferation of tokens has led to the creation of decentralized currencies, slowly spreading the money in an ever-increasing market.
Despite the significant weakness, however, selected shares and tokens have continued to perform well in recent times – a sign that they could attract unregulated funds if the market stabilizes again.
Select altcoins are showing bullishness
Consider this – The 90-day Altcoin Season Index, which tracks performance outside of Bitcoin, has been strong despite the market’s sharp decline.
During this period, 22 altcoins have been generating profits, placing them as the most important assets that attract the attention of investors.
Directors include Hyperliquid (HYPE), MemeCore (M), Canton Network (CC) and Bittensor (TAO)and this additional 47%, 66%, 14% and 44%, respectively.
AMBCrypto also grouped these assets and conducted a three-month period to identify sectors that would attract investment.
Annual Artemis data from January to March revealed that bridge tokens, AI-related assets, utilities and services, group tokens, and exchange tokens have been among the most affected categories.
Accumulation symptoms, but confirmation is still important!
At the time of writing, the accumulation/distribution (A/D) indicator indicated that extensive buying activity is underway, with trading volume hitting around 4.5 billion tokens.
However, this accumulation may represent a short-term support phase rather than a definitive reversal. Especially since the stock price remains below the resistance line.
A breakout above this level, followed by a sustained rise, would justify the need to build. Such changes can lead to a resurgence of the market and increase the rise of the best performers in this market.
Brief Summary
- About 40% of altcoins are trading near their all-time lows, and many have already lost.
- Despite the big drop, 22 altcoins have been on the rise over the past 90 days.
