- On-chain analyst Darkfost said altcoins were showing warning signs after several months of strong capital inflows.
- Darkfost’s data showed that altcoin market capitalization, including Ethereum, had risen 45% since June 2026, adding more than $371 billion.
- Rising exchange deposits and a bearish RSI divergence may indicate weakening momentum, the analyst said.
On-chain analyst Darkfost said on Sept. 26, 2026, that the altcoin market was showing its first warning signs after several months of strong capital inflows. He said increased exchange deposits and a bearish divergence in the relative strength index for Total2 may signal that altcoin momentum is gradually weakening.
According to Darkfost’s data, Total2, which measures the market capitalization of altcoins including Ethereum, had attracted more than $371 billion since June 2026. The metric rose 45% over that period.
More altcoins trade above long-term average
Darkfost also cited a sharp increase in the share of altcoins on Binance trading above their 200-day moving average.
About 80% of altcoins on Binance traded below that level in August. That share has since fallen to 13%, leaving 87% of the platform’s altcoins above their 200-day moving average.
The analyst said the shift pointed to growing euphoria in the altcoin market. He also said such moves have historically proved unsustainable and lost momentum over time.
Exchange deposits increase
Altcoin deposits to centralized exchanges rose to levels not seen since October 2025, which Darkfost described as the previous market peak.
The weekly average number of deposit transactions exceeded 22,700 on Binance and 8,300 on Coinbase. Other exchanges accounted for about 32,000 additional transactions.
Darkfost said current altcoin inflows to trading platforms remained moderate compared with levels recorded at the start of the previous bull cycle. However, he said the increase coincided with a bearish divergence in the RSI for Total2, which may indicate a gradual loss of momentum.
Market capitalization continues to rise
Altcoin market capitalization increased by more than 32% over a 30-day period in early September. Growth continued afterward, though the current 30-day rate had slowed to about 12.5%, Darkfost said.
According to the analyst, liquidity has been flowing into altcoins since July, producing the market’s strongest expansion since July 2025.
Darkfost urged market participants to monitor the warning signals cautiously, while noting that the trend could continue for some time. He said markets do not move in a straight line and that patience remained important for participants planning to open positions.
In May 2026, CryptoQuant analysts said demand for altcoins was holding up despite a sluggish market.
Source: Incrypted
