Analysis: 84% of Binance-Listed Altcoins Trade Below 200-Day Moving Average as Long Slump Persists

An extended slump in the altcoin market is dragging on, with 84% of altcoins listed on Binance trading below their 200-day moving average, according to an analysis.

CryptoQuant contributor Darkfost wrote on June 29 that altcoins have been the asset class hit hardest in the current bear market. Repeated failed attempts to regain momentum have prolonged the long-term downturn.

About 84% of altcoins listed on Binance's spot market are now trading below the 200-day moving average, a key indicator of the long-term trend. That pattern has lasted for about eight months.

Darkfost said the market capitalization of altcoins excluding Ether, or TOTAL3, also closed below the 200-day moving average on a weekly basis, reinforcing the bearish trend. He added that altcoin prices have maintained a high correlation with Bitcoin in this cycle.

The current stretch of weakness is the second-longest since 2020, Darkfost said. In the previous bear market, a similar pattern lasted about 10 months.

While the market remains in a bearish phase, such periods have historically at times offered medium-term investment opportunities, he wrote. This cycle, however, requires much stricter token selection than in the past.