Altcoins soared by US$215 billion in three days! The Trump Effect?

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The total market value of the altcoin market increased by US$215 billion between August 19 and 22, exceeding the US$1 trillion mark.

56% of the altcoins traded in Binance have exceeded the 200-day moving average, a trend analyst Darkfost regarded as a sign of the early altcoin season. The recent sharp rise in the cryptocurrency market is not limited to Bitcoin and Ethereum. The total market value of the altcoin market soared by more than 24% in three days, returning to the US$1 trillion mark.

The most significant changes have occurred in the long-term technical aspects of altcoins. Since November last year, about 80% to 85% of the altcoin price in Binhang has been below the 200-day moving average. After the latest round of gains, this ratio has reversed-56% of altcoins have rebounded above the 200-day moving average.

The altcoin market poured into US$215 billion in three days

According to data shared by Darkfost, from August 19 to 22, the market value of altcoins increased by approximately US$215 billion. As a result, the total market value of the altcoin market tracked as "Total2" once again exceeded US$1 trillion. This increase is particularly concentrated in small and medium-sized altcoins. Since lower-market capitalization tokens require less capital to generate more violent fluctuations, the price changes of this sector far exceed those of mainstream currencies. This trend shows that the rise of altcoins is not limited to a few large projects; but what is more noteworthy is that in addition to price performance, long-term technical indicators are also changing simultaneously.

What does the 200-day moving average mean for the altcoin season?

Since November last year, approximately 80% to 85% of the altcoin trading price in Binhang has been below the 200-day moving average. This level is one of the indicators commonly used in the market to assess long-term trends. With the recent rise, the market landscape has changed significantly. According to Darkfost, 56% of the altcoins tracked by Binance have rebounded above the 200-day moving average. This change shows that a considerable proportion of the altcoins that have been under pressure for months have returned to long-term averages. Darkfost views this shift directly as an "institutional switch", but it does not mean that the altcoin season has actually begun, but more points to another structure where the market has entered its early stages.

Did Trump's remarks trigger a rebound in altcoins?

Darkfost believes that behind this trend is also the impetus of Donald Trump's remarks on August 19. Trump said that the United States will buy large quantities of bitcoin, while also calling on Congress to pass the CLARITY Act, pointing out that the government's attitude towards the cryptocurrency market is changing. The comments come at a time when market volume is sluggish and seller pressure is weakening. Darkfost pointed out that liquidity then spread to altcoins, and many tokens rose rapidly. In particular, small and medium-cap altcoins responded faster, becoming one of the signs that the scope of capital rotation has expanded in this round of rise.

Has the altcoin season begun?

Darkfost believes that from a historical perspective, the current trend can be seen as a signal of the early altcoin season. More than half of altcoins have risen above the 200-day moving average and the total market value has increased by $215 billion in three days support this view. However, analysts also pointed out that the market has entered overbought territory, so it is not surprising that there will be a correction in the short term. The key is that the altcoins are not just rising for a few days, but whether the number of currencies breaking the 200-day moving average can remain high, whether Total2 can hold the US$1 trillion mark, and whether the rally can continue to spread to small and medium-sized projects. Current data shows that the altcoin market has changed significantly compared to the past few months, but to fully define it as the altcoin season, the persistence of the rally still needs to be observed.

The content of this article is based on public market data and does not constitute investment advice. It is recommended that you conduct your own research.