Altcoin Rally Potential as LTH Accumulation Signals Market Shift

CryptoQuant, a leading analytics platform, has identified a significant accumulation signal that could indicate the onset of an altseason. This signal, observed by the platform's analysts, is based on the behavior of long-term holders (LTHs) in the cryptocurrency market. The chart analyzed by CryptoQuant shows a monthly net change sum in the supply categorized as LTH, suggesting a notable shift in market dynamics.

The accumulation signal is particularly noteworthy as it comes at a time when the cryptocurrency market is experiencing various fluctuations. According to the analysts, the behavior of LTHs often precedes broader market trends, making this signal a crucial indicator for potential price movements. The accumulation by LTHs typically signifies confidence in the long-term value of certain assets, which could drive an increase in their prices.

This development is significant as it coincides with other market observations. For instance, there have been reports of large transactions involving cryptocurrencies, with some speculating that these movements could be indicative of whale accumulation. However, official statements from exchanges and analytics platforms have not confirmed these speculations, leaving room for interpretation.

CryptoQuant analyst Axel Adler Jr. has spotted a potential early sign of a new altcoin wave. In a recent post, he revealed that altcoin exchange inflows have dropped sharply – something that’s often followed by strong market rallies. Adler Jr. noted that the usual monthly inflow of altcoin exchanges has declined by 36%, falling from an annual average of $2.5 billion to only $1.6 billion as of June 27, 2025. This $900 million decline suggests reduced selling pressure, as investors are holding onto their assets rather than liquidating.

Historically, these small inflows have anticipated significant altcoin price rises, as seen during the jumps from August to September 2024 and throughout the second half of 2023. Adler Jr. noted that in all instances, minimal trading activity preceded significant altcoin price increases, fostering optimism among traders.

So, why does this matter? When less capital is moving into crypto exchanges, it usually means there’s less selling happening. Instead, investors might be accumulating, waiting for the next move up. CryptoQuant’s data shows that when inflows fall below $1.6 billion, it often sets the stage for a strong altcoin rally. It signals a shift – away from short-term speculation and toward long-term holding. Sometimes, capital temporarily moves into Bitcoin first, before flowing back into altcoins with more strength.

This pattern often builds up momentum. And when that momentum swings back to altcoins, prices can surge quickly. Right now, the market seems to be in a transition phase. The drop in exchange inflows is a classic sign of quiet accumulation, which often comes before a rally. If this pattern holds, it could align with a broader market recovery and renewed risk appetite.

So the big question: is the next altcoin rally around the corner? If history repeats, we might be witnessing the early signs of another breakout. Stay tuned – the market could be gearing up for a major shift. The potential for an altseason is further supported by the recent price movements of major cryptocurrencies. Ethereum, for example, has seen a surge in price, reclaiming the $2400 mark. This price movement is attributed to increased ETF flows and the accumulation of Ethereum by whales, suggesting a bullish sentiment among large investors. Analysts are eyeing a potential breakout toward $2800, which could further fuel the altseason narrative.

The accumulation signal identified by CryptoQuant is not the only factor contributing to the potential altseason. The behavior of LTHs, combined with the price movements of major cryptocurrencies and the speculation around whale accumulation, paints a picture of a market poised for significant gains. However, it is important to note that market dynamics can be unpredictable, and these signals should be considered alongside other indicators and market conditions.

In conclusion, the accumulation signal spotted by CryptoQuant analysts, along with the recent price movements and market observations, suggests that an altseason could be on the horizon. While this signal is a positive indicator, investors should remain cautious and consider multiple factors before making investment decisions. The cryptocurrency market is known for its volatility, and while the current signals are encouraging, they do not guarantee future performance.