Altcoins May Be Overheated, Expert Points to Warning Signals

The altcoin market has seen a strong rebound this summer, attracting huge capital; however, the latest on-chain data suggests that the continuation of the upward trend may be at risk. Analyst Darkfost noted that since June 2026, tokens from the Total2 group have attracted over $371 billion, representing a 45% increase in just a few months. In August, about 80% of altcoins on Binance were below the 200-day moving average, but currently, only 13% are below that level. Darkfost assesses that the sharp change indicates growing euphoria, but rapid strengthening is not always sustainable. The number of altcoin deposits on exchanges has also increased, reaching levels not seen since October 2025, with a weekly average exceeding 22,700 on Binance and 8,300 on Coinbase. The increased number of deposits suggests that more tokens are available for trading. Darkfost points to a developing bearish divergence on the RSI for Total2, which may indicate market weakening. The current market phase differs from that of a few months ago, and the key question is whether the influx of capital will be sufficient to sustain the increases.

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