Extreme Fear Grips Altcoins As 90% Of Tokens Trade Below 200DMA: Perfect Time To Accumulate?

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Altcoins, bless their hearts, are enduring the kind of pressure that would make even the most seasoned investor clutch their pearls. After the unforgettable Friday crash that sent crypto into a tailspin, the market saw the largest liquidation event in its history. Billions – yes, billions – evaporated in the blink of an eye, even wiping out some of the ‘blue chip’ players like Chainlink (LINK) and Avalanche (AVAX), which saw their prices plummet by over 60%. But don’t worry, they managed to recover a bit over the weekend. How thoughtful.

While things have stabilized a touch, let’s be real: investor confidence is hanging by a thread. The market is still reeling from that shock, and traders are tiptoeing around, worried about another surprise rollercoaster ride. According to the ever-pessimistic analyst Darkfost, the market right now is one big, loud ‘meh’ – only 10% of altcoins listed on Binance are trading above their 200-day moving average, meaning 90% of the market is stuck beneath the long-term trend like an uninvited guest at a dinner party.

So, what does this all mean? In theory, such an abysmal setup could be the perfect time to buy. It’s a bit like shopping for a vintage wine that’s been marked down because everyone else is too terrified to touch it. Historically, these dramatic sell-offs often set the stage for some accumulation. The smart money, it seems, loves a good bargain, and they’re probably quietly positioning themselves for the next cycle. However, let’s not get too excited. The real question is: Are we at the bottom, or is this just a brief pause before we get hit with another leg down? Stay tuned.

Market Exhaustion Could Signal the Next Rebound

Darkfost, in his ever-so-dramatic fashion, points out that these kinds of moments – when everyone is shaking in their boots – often signal a turning point. You see, such configurations have popped up three times throughout this cycle, each one followed by a short-term rebound. A little bit of exhaustion, a little bit of buying from those who can see the opportunity. It’s all terribly exciting, really.

But, and this is where the plot thickens, Darkfost cautions that this is not an invitation for a free-for-all shopping spree. The key, as always, lies in the fundamentals. Look for projects that have managed to keep their heads above water, even during the darkest days. Those that still boast liquidity, developer activity, and some on-chain usage might just be worth the gamble. As for the others? Well, let’s just say they’re likely to be swept away in the next market correction.

For those who missed the boat last time, this could be the ultimate opportunity to get your hands on assets at a price so low it’ll make your head spin. But, as Darkfost reminds us, timing is everything. Once the market realises it overreacted, the doors will slam shut, and the floodgates will open for a quick, upward surge. Those who bought during peak fear will be sipping champagne while the rest of us are left holding the bag. Ah, sweet irony.

Altcoins Face Critical Support Test

Now, let’s take a look at the broader picture. The total market cap, excluding the top 10 assets, is sitting pretty at around $263 billion, a charming little decline of 2.3% over the week. Things aren’t looking particularly healthy in the altcoin world, with prices retracting sharply from their previous resistance. In other words, altcoins have been rejected by the market like an overzealous suitor at a soirée.

Technically speaking, the market is still above the 200-week moving average (that’s the red line, in case you’re wondering), which has served as a solid support level in the past. However, let’s not ignore the strong selling pressure. The long downside wick is basically saying, ‘Please, stop. I’ve had enough.’ So, while the market cap’s holding steady, this could be the calm before the storm. If that $250 billion mark holds, we might see a stabilization, but if it falls? Well, hold onto your hats – we might be looking at another round of liquidations, possibly even testing that $200 billion level, which has been a reliable floor in previous cycles.

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2025-10-15 03:13