Altcoin Season Setup Advances: CEX Volume Hits Cycle Highs Despite Price Weakness

The anticipated altcoin season of 2025 failed to materialize, leading to significant market drawdowns. Many altcoins lost substantial value, forcing investors to exit the market. As 2026 approaches, market sentiment remains fragile, with analysts warning of potential further declines. Market data shows a drastic decline in the market capitalization of altcoins, indicating capital destruction. Some analysts suggest that historical precedents could signal an eventual recovery, though liquidity is key. Increased trading volume for altcoins, excluding the top performers, contradicts the idea of a dead cycle. This elevated trading activity likely stems from whale-driven accumulation and strategic capital rotation. The OTHERS market cap chart demonstrates prolonged compression, reflecting the depth of the correction. The chart indicates weak upside momentum, with key moving average failures, and volume remaining stagnant. A genuine altcoin recovery hinges on the OTHERS market cap reclaiming key levels and sustained volume growth.