Between August 19 and 22, $215 billion was added to the altcoin market cap, a surge of more than 24% in just 3 days, pushing Total2 back above $1 trillion in market cap.

Mid and small caps in particular rose the fastest. Being the least capitalized, they remain structurally the most exposed to extreme volatility in both directions.

On Binance, which covers a wide range of altcoins, this blistering performance is especially visible.

After a period of dormancy that began in November, during which roughly 80% to 85% of altcoins traded below their 200-day moving average, a key technical level, 56% of them have now moved back above that threshold.

Today, more than half of the altcoins available on Binance are trading above their 200-DMA, signaling a regime shift.

This turnaround followed several announcements from Trump on August 19, which came amid very thin volumes and seller exhaustion.

The president notably stated that the U.S. would purchase large amounts of BTC, while also urging Congress to pass the Clarity Act, claiming his administration had ended the war on crypto once and for all.

These announcements triggered a wave of liquidity into altcoins, driving a large share of them higher.

Historically, this level of gains marks an intermediate signal of an early-stage altseason.

That said, the market has entered overbought territory that calls for a short-term breather.

There's no need to rush, though, if the momentum for altcoins remains strongly positive, more opportunities should continue to present themselves.

Written by Darkfost