Altcoin Breadth Retreats from Peak Levels as Market Sentiment Cools

  • Altcoin breadth oscillator drops, ending weeks of strong momentum.

  • Ethereum and Bitcoin test liquidity levels amid macro-driven pullback.

  • Solana and XRP risk further downside if supports fail this week.

The altcoin market is entering a new phase following a noticeable decline in breadth indicators. According to Quantum Research, market breadth has cooled sharply, retreating from the previous euphoric zone. 

Analysts now observe a cautious environment as enthusiasm moderates across the broader crypto landscape. This shift may signal near-term vulnerability and increasing selectivity among altcoin investors.

Breadth Oscillators Exit Euphoria Zone

Quantum Research reported a marked decline in its proprietary 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.

According to the Quantum charts, it displays a sharp peak that coincides with recent market highs, followed by a downward slope in the oscillator panel. Market participants viewed this peak as an early warning of reduced buying power across the altcoin space. 

The retreat suggests waning participation in altcoin rallies, with several assets no longer keeping pace with leading coins.

As indicated in the chart shared, the Breadth Strength Index shows repeated rejections at the higher threshold, followed by a gradual flattening. This weakening momentum typically signals the beginning of a rotation phase or a market-wide pause. 

Analysts caution that such behavior often precedes localized corrections or volatility spikes in underperforming altcoins.

The cooling breadth aligns with broader market pullbacks, where altcoin rallies are showing signs of exhaustion.

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 key levels are now considered strategic liquidity zones.

Analysts from Stockmoney Lizards labeled the $114,000–$115,000 region as Bitcoin’s fair value gap, where accumulation may resume. Ted Pillows described the weakness as temporary, with expectations of a rebound over the coming weeks. 

For Ethereum, Michael van de Poppe highlighted the $3,100 zone as a potential reset point before resumption of the $4,000 target.

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. Degen Hardy confirmed he exited long positions and is waiting for re-entry between $140 and $150.

BNB traded at $760, breaking below its 20-day moving average of $780. Analysts read this move as a momentum shift toward bearish territory. 

Quantum Research’s update confirms a structural shift across the altcoin market. Traders are now looking for stability at technical support levels while monitoring key oscillator trends for signs of renewed momentum.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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