CryptoQuant analyst Darkfost said in a post on X that the altcoin market has shown clear signs of recovery in recent days, with market structure beginning to change and a possible altseason already entering its early stage.
According to the figures he cited, total altcoin market capitalization increased by about $215 billion in just three days, a gain of more than 24%. That move pushed the total altcoin market cap back above $1 trillion.
Small- and mid-cap altcoins led the latest move
Darkfost said small- and mid-cap altcoins posted the strongest performance in the current rally. Because their circulating market capitalizations are lower, those assets are more sensitive to capital inflows. He also said they carry greater two-way volatility risk.
Binance data points to stronger recovery signals
Darkfost said data from Binance adds to the recovery case for the broader altcoin market. 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 share has now improved, with 56% of altcoins listed on Binance moving back above the key technical level.
In his view, that shift suggests the market may be entering a new cycle phase.
Darkfost ties the reversal to Trump’s recent crypto remarks
Darkfost said the current trend reversal is linked to several recent pro-crypto signals released by Donald Trump. He said Trump stated that the United States would 「buy Bitcoin on a massive scale」, urged Congress to push forward the CLARITY Act, and said his administration had ended what he described as the previous unfriendly approach toward the crypto industry.
Darkfost said those remarks lifted market sentiment. Against a backdrop of weak trading volume and easing sell-side pressure, large amounts of capital began flowing into the altcoin market, lifting multiple sectors at the same time.
Overbought conditions raise short-term caution
Darkfost said historical patterns show that broad-based gains across altcoins are often viewed as an important early signal that an altseason is starting. Even so, he warned that the market has already entered overbought territory in the short term, and investors should watch for a stage of correction.
He added that if overall upside momentum holds, fresh investment opportunities could still emerge later.