Altcoins Show Signs of Strength Ahead of the Monthly Close — Is Altseason Approaching?

Jakarta, Pintu News – Since Bitcoin (BTC) plummeted below $90,000, the asset’s price has been struggling to return to that level. This condition also causes the price of Ethereum (ETH) to remain stuck below $3,000, BNB (BNB) below $900, XRP below $1.9, Cardano around $0.35, and Dogecoin (DOGE) around $0.122.

Meanwhile, some altcoins are showing significant strength. The price of Axie Infinity (AXS) started to strengthen again with a sharp uptrend, the price of Hyperliquid (HYPE) surged as the open interest of HIP-3 reached an All-Time High, and the price of Pump.fun (PUMP) also experienced a huge surge to reach a crucial turning point.

With these developments, it seems that altcoin season may be just around the corner. However, on-chain data suggests that altcoins are at a structural turning point, not in a comfort zone.

Altcoin Market Structure Shows Signs of Cracking

The chart shows an important shift in the overall altcoin market structure. The long-term uptrend that has been in place since 2023 has now been broken, and the latest price movements confirm the weakness of market forces.

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Most notably, the key support zone-which was previously the floor during the accumulation phase and underpinned several rallies-has now turned into a resistance area. The latest retest of this level showed clear rejection, signaling that buyers no longer control the area.

This change changed the character of the market as a whole. The price rally is now no longer a sign of strength, but merely a test of resistance pressure from above. Although the price is still holding near the latest low, the failure to reclaim the old support area indicates an increased downside risk.

From this point, altcoins face two narrow possibilities: either break through resistance and regain market acceptance, or enter a prolonged phase characterized by weak bounces, declining price peaks, and lagging performance as liquidity and market attention shift elsewhere.

Liquidity Rotation Signals “Risk-Off” Conditions, Hindering Potential Altseason

Data from Santiment’s chart shows a clear shrinkage of on-chain liquidity, with the combined market capitalization of the top 12 stablecoins declining by $2.24 billion in the last 10 days. As of January 26, 2026, this decline reflects an approximate 0.8% contraction in the supply of stablecoins, along with a decline in Bitcoin’s price towards the $87,000 level.

This decline is particularly noteworthy because stablecoins are a major source of liquidity for altcoin speculation. When the supply of stablecoins shrinks rather than grows, it signals that capital is exiting risky assets rather than moving between cryptocurrencies.

At the same time, the increasing allocation of funds to gold and silver suggests a broader shift towards defensive or “risk-off” assets. Until the market capitalization of stablecoins stabilizes and returns to growth, the conditions needed for a sustainable altseason remain structurally unformed.

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Can Altseason be Expected in 2026?

Current market conditions reflect weakening altcoin momentum, shrinking stablecoin liquidity, and a shift of capital to defensive assets. The combination of these factors is not yet favorable for a large and comprehensive rally as is common in a true altseason.

Reinforcing this view, Tom Lee, Chairman of Bitmine, highlighted the FOMO-driven rally in gold and silver as a major factor diverting liquidity away from the crypto market. According to him, this rotation has been a temporary limit to crypto’s upside potential.

However, he also noted that once the momentum in these “safe haven” assets fades, there is a good chance that capital will rush back into Bitcoin and Ethereum.

Nonetheless, the shift in liquidity back to crypto does not automatically trigger a classic altseason. The year 2026 will most likely be characterized by selective rallies and limited rotation, where only certain altcoins experience alternating strong bullish phases instead of an overall market surge.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinpedia. Altcoins Showing Strong Potential Ahead of the Monthly Close, Will This Trigger an Altseason? Accessed on January 28, 2026