Altcoin Market Shows Warning Signs of Potential Sell-Off

The cryptocurrency market has been experiencing a period of consolidation since the altcoin prices hit rock bottom levels in early January. However, beneath this stable surface, several warning signs are emerging that could indicate a potential sell-off.

Exchange inflows have been steadily increasing, reaching multi-quarter highs and signaling growing intent to sell. This is particularly concerning as previous spikes in exchange inflows have historically aligned with Bitcoin pullbacks from local highs.

The USDT supply has also seen a significant decline, marking the largest monthly drop in three years. A shrinking stablecoin supply can weaken buying pressure for Bitcoin and altcoins, especially during fragile market conditions.

While these signs are not yet a confirmed crash signal, they do create conditions where downside moves could accelerate faster than recoveries if left unchecked. The market will be closely watching to see how these trends continue to unfold in the coming weeks.