Analysis: About 70% of altcoins on Binance fall below the 200-day moving average, market returns to a weak state

crypto analyst Darkfost posted on X platform stating that from mid-August to the end of September, the total market capitalization of altcoins cumulatively grew by approximately $320 billion, but the subsequent pullback has wiped out about $200 billion, equivalent to nearly two-thirds of the previous gains.

Data shows that the proportion of altcoins on the Binance platform below the 200-day moving average dropped from 82% in mid-August to about 10% in early October, and has now rebounded to approximately 70%, close to the level before the August rally began.

Darkfost believes that macroeconomic policy, geopolitical tensions, the uncertainty brought by the U.S. midterm elections, and the decline in U.S. stocks, especially tech stocks, have together exacerbated the weakness of the altcoin market. However, he pointed out that historically, similar extreme market conditions have sometimes also signaled that a trend change is imminent.