The altcoin market is entering a new phase following a noticeable decline in breadth indicators. Analysts are expecting waning momentum and increasing selectivity among investors.
Breadth Indicators Exit Euphoria Zone
Quantum Research reported a marked decline in its Altcoin Breadth Oscillator and Breadth Strength Index. These indicators previously hovered at the upper end of their range, reflecting an overextended rally. Both metrics have now turned downward, confirming the exit from the 'euphoria' phase.
Analysis shows a sharp peak that coincides with recent market highs, followed by a downward slope in the oscillator panel.
Price Reactions Reflect Technical Breakdown
Bitcoin declined by 3.2%, testing the $114,000 support level, while Ethereum lost 5.4%, sliding to $3,500. These levels are now considered strategic liquidity zones. Experts speculate that these movements may indicate an early stage of correction.
Current Market Situation Analysis
XRP dropped to $2.95, down 5.8%, with analysts identifying $2.60 as a critical support level. Solana fell 6.7% to $165 amid large-scale liquidations triggered below $150. Analysts are now calling for a more cautious approach in the market, noting exhaustion signs among underperforming altcoins.
The altcoin market is facing pressure from declining breadth indicators, which may indicate temporary vulnerability and the need for close monitoring of key support levels to determine the future direction.
