Altcoin Market Shows Signs of Improvement Ahead of Potential March Recovery

The crypto market has shown signs of improvement in late February, with some analysts predicting an altcoin season could emerge in March.

Data from CryptoQuant indicates that only about 5% of altcoins listed on Binance are trading above their 200-day simple moving average (200-day SMA), suggesting a weak performance. However, this ratio has historically stayed below 15% for a maximum of five months before rebounding.

Several analysts have identified early positive signals, including the OTHERS/BTC chart showing potential reversal signs on the monthly timeframe. The MACD indicator has crossed above the signal line and formed its first green histogram bar since early 2024.

Despite these signals, investor sentiment remains cautious, with capital still favoring Bitcoin over altcoins. A true altcoin season may require sustained capital rotation and fresh inflows into the market.