Analysts warn of further altcoin downside as key metrics turn bearish

The total market capitalization of altcoins, excluding Bitcoin (TOTAL2), is showing clear bearish signals after a sharp decline, according to an analysis by Cointelegraph. The index has fallen 32% to $1.19 trillion this month after reaching an all-time high of $1.77 trillion on Oct. 10. This drop has pushed TOTAL2 below key support levels, including its 50-week exponential moving average (EMA), while the SuperTrend indicator has also turned bearish. Cointelegraph noted that similar bearish turns in these indicators during the 2018 and 2022 bear markets were followed by further declines of 85.5% and 66%, respectively. In a related analysis, analyst Merlijn The Trader stated that the altcoin market cap is consolidating within a strong downtrend. The analyst noted that while the $1.15 trillion support level is currently holding, a break below it could send the market cap down to $830 billion. An "altcoin season" is unlikely until the TOTAL2 index breaks through the $1.68 trillion resistance level, the analyst added.