As capital inflows into altcoins accelerate in the cryptocurrency market, on-chain data suggests the market may be approaching a more critical phase. Cryptocurrency analytics company CryptoQu
As capital inflows into altcoins accelerate in the cryptocurrency market, on-chain data suggests the market may be approaching a more critical phase.
Cryptocurrency analytics company CryptoQuant stated that alongside the strong rise in the altcoin market, some early warning signs have also emerged.
At this point, CryptoQuant analyst Darkfost noted that 87% of altcoins listed on Binance have entered an uptrend, but there are early warning signs for the current rally.
According to the analyst’s assessment, the Total2 indicator, which tracks altcoin market capitalization including Ethereum, has attracted over $371 billion in inflows since June 2026. During this period, the indicator is said to have risen by approximately 45 percent.
The expansion driven by capital inflows into the altcoin market is also reflected in the long-term trend indicators of altcoins. In this regard, the analyst noted that while approximately 80% of altcoins listed on Binance in August were trading below the 200-day moving average, this figure has dropped to 13% following the recent surge.
However, approximately 87% of altcoins have risen above the 200-day moving average. The analyst noted that this shift indicates a strong surge in market enthusiasm, but cautioned that such broad-based movements historically do not last forever.
“…While 80% of altcoins on Binance traded below this level in August, today only 13% remain below it.”
This means that 87% of the altcoins on the platform have reversed their previous trends and entered an upward momentum. This shift indicates a kind of euphoria prevailing among altcoins. Historically, this type of dynamic is not sustainable and eventually loses momentum.”
The analyst noted that while altcoins are expanding, there’s also been an increase in transfers of altcoins to centralized exchanges. He highlighted this as another notable development, stating that the weekly average of altcoin deposits has surpassed 22,700 on Binance and 8,300 on Coinbase. Approximately 32,000 transactions were recorded on other exchanges.
According to the analyst, these levels of altcoin deposits to exchanges mark the highest levels seen since the previous market peak in October 2025.
One of the most important warnings in the analysis is the bearish divergence in the Total2 RSI indicator. According to the analyst, this technical outlook suggests that while the price continues to rise, the momentum indicator is not strengthening to the same extent.
The analyst notes that the coincidence of increased altcoin transfers to exchanges and this divergence in the RSI is a situation that needs to be closely monitored. According to the analyst, while on-chain data shows that the altcoin rally is continuing, the increased transfers and the divergence in the RSI indicate that the upward momentum may be starting to weaken.
*This is not investment advice.
Continue Reading: As Enthusiasm Rises in Altcoins, the First Warning Signal Arrives! CryptoQuant Announces!
