CryptoQuant analyst Darkfost said in a post on X that the altcoin market has recently shown clear signs of recovery, with market structure beginning to shift and the market possibly entering the early stage of an altseason.
Data cited by Darkfost showed that from Aug. 19 to Aug. 22, total altcoin market capitalization rose by about $215 billion. That represented a gain of more than 24% in just three days and pushed the total back above $1 trillion.
Darkfost said small- and mid-cap altcoins were the strongest performers in the latest advance. Because of their lower circulating market value, those assets are more sensitive to capital inflows, though they also carry higher two-way volatility risk.
Binance data points to stronger recovery signals
Darkfost also said data from Binance suggests the recovery signal in the altcoin market is strengthening. Since last November, around 80% to 85% of altcoins had remained below their 200-day moving average, or 200-DMA, for an extended period. That figure has now improved, with 56% of altcoins listed on Binance moving back above the key technical level, a sign that the market may be entering a new cyclical phase.
Trump’s recent crypto remarks seen as a catalyst
According to Darkfost, the latest trend reversal is tied to several recent pro-crypto signals from Donald Trump. On Aug. 19, Trump said the United States would “buy Bitcoin on a massive scale,” urged Congress to advance the CLARITY Act, and said his administration had ended what he described as earlier unfriendly policies toward the crypto industry.
Darkfost said those remarks lifted market sentiment. With trading volumes still muted and selling pressure easing, large amounts of capital began flowing into the altcoin market, driving gains across multiple sectors.
Overbought conditions remain a short-term risk
Darkfost added that, based on historical experience, broad-based gains across altcoins are often seen as an important early signal that altseason is beginning. Even so, he cautioned that the market has already entered overbought territory in the short term, and investors should watch for a phase of correction. If broader upside momentum continues, he said, new investment opportunities could still emerge.