**[Analyst: First Warning Signal of Altcoin Frenzy Appears, Upward Momentum May Be Weakening]** BlockBeats News, September 27 – CryptoQuant analyst Darkfost stated in a post that on-chain data indicates the altcoin market may be entering a more critical phase. Recently, altcoins have attracted significant capital inflows. Since June 2026, Total2, which represents the total market capitalization of altcoins (including ETH), has absorbed over $371 billion, growing 45% in just a few months. This sudden surge in demand for altcoins is also reflected in the number of altcoins listed on Binance trading above their 200-day moving average. The 200-day moving average is an important indicator for measuring market trends. In August of this year, approximately 80% of altcoins on Binance were trading below their 200-day moving average, but now this proportion has dropped to 13%. This means that 87% of altcoins on Binance have reversed their previous trends and entered a phase of upward momentum. This shift indicates a certain degree of frenzy in the altcoin market. However, historically, such trends are often difficult to sustain and may eventually lose momentum. Additionally, the volume of altcoins being deposited onto trading platforms has now risen to levels not seen since October 2025, which coincided with the peak of the last market cycle. Binance's weekly average deposit transactions have exceeded 22,700, Coinbase has surpassed 8,300, and other exchanges combined account for approximately 32,000 transactions. However, compared to the early stages of the previous bull market, the scale of altcoin inflows into trading platforms remains relatively limited. Even so, these signals are still worth closely monitoring, especially as the RSI for Total2 has recently started to show bearish divergence, further indicating that the upward momentum in the altcoin market may be weakening. [Original Link]