Altcoin Bloodbath: Markets Shatter Critical Support Trendline in Weekend Carnage
Altcoins face existential crisis as technical foundations crumble
The Breakdown
Markets plunged through the long-term trendline that bulls had clung to for months—the weekend massacre leaving nothing but chart wreckage and shaken confidence. This isn't just a dip; it's a structural failure that questions the very thesis behind alternative cryptocurrencies.The Aftermath
Trading volumes exploded as panic selling gripped the market. That 'buy the dip' mentality? Nowhere to be found—replaced by institutional-grade cold feet and retail investors wondering why they didn't take profits at the top. Typical finance bros always chasing yesterday's returns.Silver Linings?
History shows these violent resets often create generational buying opportunities. But catching falling knives requires steel nerves most traders lost somewhere around the 40% drop mark. The trendline isn't just broken—it's been atomized, and rebuilding confidence will take more than a few green candles.
90% of altcoins are trading below their long-term trendline after the recent market crash. The indicator has pointed to recoveries in the past, though altcoins can still spend months with depressed prices. | Source: Cryptoquant
Following the recent market crash, altcoins on Binance returned to bear-market levels. Only around 10% of altcoins have retained their direction, with the rest falling below their general trend. There is no confidence that the assets may regain the trend, as the recent breakdown erased three years of growth on the crypto market.
The recent expansion season is also over, as the altcoin season index sank to 36 points. While some tokens achieved rapid recoveries from their lows, the market is still reeling and enthusiasm for altcoins may take a long time to rebuild.
Can altcoins recover?
The recent market crash led to rapid loss of value, with some assets like ATOM going to zero due to Binance’s trading structure. The lack of liquidity led to a loss of trust, though some blue-chip assets survived.
The altcoin market was still supported by ETH hovering close to $4,000, while BNB still made new all-time highs. However, the increased volatility undermined trust, as even the leading coins took a step back.
The current market conditions are even putting pressure on BTC, as the leading coin sank toward the $110,000 level.
The current indicators have served as a sign to buy altcoins in the past. However, despite the rock-bottom price, there has been little return in demand, and only short-term rallies. During past cycles, altcoins have recovered from DEEP crashes and continue to have record seasons of expansion.
This time around, the market is yet to show a return of trust, mostly based on the risky trading mechanisms for altcoins.
ETF approval delays hurt some of the altcoins
Some of the altcoins in the ETF shortlist are losing their positions, as the US government shutdown has delayed the approval procedure indefinitely.
A total of 16 altcoin ETFs are in limbo, with the most notable linked to SOL, XRP, and LTC. ADA and Doge also awaited approvals, ahead of an eventual rally. The XRP ETF delay also led to accelerated whale selling, as long-term holders still wanted to realize gains at a more favorable price.
October set the expectation for a flood of approvals, with over 70 ETFs in the queue. Approvals were expected between October 16 and October 26, with some of the funds given 90% odds of launching in the coming weeks.
The ETFs are still expected to start trading in case the government shutdown ends. However, the altcoins will have to start at a lower range.
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