Altcoin investors have endured a challenging year, with TOTAL2 down roughly 30% from its peak this year. Some analysts argue that the downturn may be nearing its end, citing price positioning, market participation, and technical indicators as reasons a durable rebound could unfold. Price positioning shows a rare pattern: only about 3% of Binance-listed altcoins are trading above the 200-day moving average (EMA).
Darkfost of CryptoQuant attributes this to liquidity constraints and a risk-off investor mindset, with capital preservation driving the broader downtrend. Even so, major coins like XRP, TON, and ADA maintain solid fundamentals, and historical cycles suggest such pessimism can create buying opportunities for patient investors. Secondly, market participation: Retail fear and indifference can signal bottoms, while large investors quietly accumulate. CredIBull Crypto has highlighted that capital availability is less a constraint than investor interest, and that initial upside often attracts back retail participation, accelerating the next leg higher.
Third, technical analysis. Michaël van de Poppe notes that the altcoin market cap sits on a strong support level, which could sustain a rebound if prices hold. A confluence of indicators also points to the end of the decline phase and supports a case for gradual DCA entering from December. However, not all forecasts are optimistic. VC funding remains restricted and a full recovery may require more time; a 2026 altcoin season cannot be ruled out. Whether altcoins will actually rebound or otherwise, the market view is increasingly seeing this phase as an inflection point rather than a simple continuation of the bear market.
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