The altcoin market continues to struggle under heavy bearish pressure, with analytics firm Swissblock indicating negative momentum is only beginning to decelerate. Data shows altcoin sell-offs on exchanges like Binance remain elevated, with over 95% of altcoins trading below a key bullish indicator. The AI token sector has been hit hardest, while Real-World Asset tokens have shown relative resilience during the market downturn.
The prevailing negative market sentiment is hurting altcoin holders the most, and market relief for the segment is unlikely in the near term. According to the analytics firm Swissblock, the sector is still struggling under firm bearish momentum.
The firm cited its proprietary Alts impulse signal, a short-term indicator that flagged the early January altcoin recovery. “While the negative momentum is beginning to decelerate, a positive crossover remains a distant prospect for now,” the firm stated.
As Bitcoin’s price fell below $95,000 from mid-January, the altcoin sell-off intensified on Binance. Data from CryptoQuant shows rising altcoin inflows to exchanges have not eased, which could cap a strong relief rally.
Furthermore, less than 5% of altcoins on Binance were above the 200-day Simple Moving Average at press time. This illustrates that most altcoins were struggling under strong bearish momentum as the sell-off deepened.
From a market category perspective, AI tokens were the hardest hit over the past month, according to Arkham data. The sub-sector was down 57% on average, nearly matching DeFi’s losses.
Real-world assets declined by only 10% on average, performing best during the early 2026 risk-off environment. These were on-chain stocks and ETFs tracking U.S. equity markets, a sign that traditional finance outperformed crypto.
The altseason index has dropped to 39 from nearly 60 in January as well. Its distress has been accelerated by Bitcoin’s extended plunge below $70,000 and Ethereum’s weakness near $2,000.
