Why analysts think the worst may be over for Altcoins
Altcoin investors may close out 2025 without seeing profits in their portfolios. However, despite the altcoin market capitalization (TOTAL2) down 30 percent from this year's peak, many analysts are optimistic.
What makes analysts believe that the altcoin bear market may enter its final stage? The following points highlight the main reasons.
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Why are Altcoins on the rise?
First, CryptoQuant data shows that only about 3% of altcoins on Binance trade above their 200-day moving average. This level is a historical low.
CryptoQuant analyst Darkfost cites lack of liquidity and defensive investor sentiment as the main causes. Investors are currently prioritizing capital preservation over exposure to risky assets.
The fact that most altcoins are trading well below their long-term averages reflects broad pricing driven by negative sentiment. Recent BeCrypto analysis shows that altcoins like XRP, TON and ADA have strong fundamentals, but their prices have failed to recover.
Despite the bleak outlook, historical comparisons suggest that such lean times often present attractive opportunities for patient investors.
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“Although it may seem counterintuitive, these types of periods often offer better opportunities. This level can last for some time, especially if the market enters a longer bear phase,” said Darkfost.
Second, fear and lack of interest of retail investors often open the best price zones. Big investors take these times to collect.
The famous X analyst CrediBULL Crypto highlighted this factor as a key signal to identify market bottoms. A recent post argued that it is attention, not capital, that moves.
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As retail investors lose interest, big players step in to buy. When the early green candles appear, retail attention gradually returns. Retail involvement then accelerates the next phase of activity.
Technical indicators point to a potential downside
Thirdly, several technical indicators suggest that the altcoin bear market is nearing its end. Well-known market analyst Michael van de Pop said that the current altcoin market capitalization levels serve as strong support. He described the zone as “a place to hold.”
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“Finally, it looks like we're at a critical support level. It's worth staying at this level. Strong bulls suggest green candles could be seen from here,” said Michael Van de Pop.
Additional signs reinforce this view:
These factors suggest that altcoins may be in the final decline phase. A recent BeCrypto analysis suggests that the DCA strategy could be effective if launched from December.
However, some analysts continue to warn of risks. They argue that the altcoin era may not even arrive in 2026. The flow of venture capital is weak, and market sentiment may take a long time to recover.
