Alts Massacre: After $580 billion evaporated, Rebound signals emerge

[Crypto World] Alts have seen a fierce fall in this wave. From October last year to now, the entire sector's market capitalization has evaporated by over $580 billion, leaving only a $1.19 trillion market. The $19 billion liquidation event made quite a splash in the industry, but what hurts more is the subsequent performance—only 3% of the alts on a certain leading exchange can stand above their 200-day moving average, while the rest are basically struggling.

Interestingly, although the market sentiment is extremely fearful (the Fear and Greed Index is as high as 29), the seasonal index for alts has actually fallen to 17%. Historically, this position is usually a prelude to a rebound. The increase mainly flowed into narrative-driven varieties such as artificial intelligence and privacy coins, indicating that the market is still choosing to believe in certain stories.

The technical side also reveals some clues. The Bollinger Bands have narrowed close to the support level, and the volatility indicator shows obvious signs of accumulation. If this rebound really comes, theoretically it could push the total market capitalization to around $1.21 trillion. The key still lies in whether the subsequent market sentiment can really shift.