- Altcoins are currently slowing down, with the total altcoin market capitalization sitting near $1.16 trillion.
- ISM Manufacturing PMI slipped to 48.2, signaling economic weakness and delaying altseason conditions.
- Past altseasons began when ISM was above 55, a level the market hasn’t reached yet
Recently, the altcoin market has seen a slowdown in activity and has a total market capitalization of $1.16 trillion U.S. dollars. This slowdown is occurring following the release of the latest data for the U.S. Economy.
The ISM Manufacturing PMI for the month of November came in at a value of 48.2, which was lower than expected, which would have been 49, indicating that the manufacturing sector continues to decline. This indicates that the overall growth of the economy is not yet accelerating out of its contraction phase.
Why Altseason Hasn’t Started
According to the recent update on X by Bull Theory, the connection of ISM Numbers to historical Altcoin Seasons was discussed as well; the Altcoin Seasons of 2017 and 2021 occurred when the ISM Index was above 55, indicating a very strong upswing in the manufacturing area, and the current reading of 48.2 shows that the conditions required for major Altcoin Rallies are not yet in place.
All aspects of the manufacturing process, including new orders, production, hire rates, the rate at which the supply chain supports production, and inventory levels contribute towards the ISM Number, showing the health of the economy would be beneficial.
Also Read: Altcoin Leverage Surge Sparks Warning of Mass Liquidations
ISM Data Reflects Softening Market Strength
According to the data curated from McroMicro, over the last twenty years, both the manufacturing index (blue line) and the non-manufacturing index (red line) have failed to maintain levels above 50 on a continuing basis over the last few years. The last two peaks, both of which exceeded a reading of 55, occurred in 2017 and 2021 and are correlated with the two most substantial altcoin surges.
Right now, the current plateau has a reading of 48-50 and suggests a period of caution. There is a strong correlation between macroeconomic growth and the upward momentum in the cryptocurrency market, as evidenced by the two peak periods listed above.
Momentum Indicators Reflect Weak Market Strength
The Altcoin Total Market Cap Weekly Chart from TradingView shows that the current market cap of total altcoins is approximately $1.16 trillion, indicating a price resistance level of around $1.26 trillion. The current RSI reading is 39, indicating decreasing bullish momentum.
The average volume for every week remains around $190 billion, indicating a lack of significant buying action by the general market and indicating market caution rather than broad-based buying. Historically, breakout moves that exceed former price resistance levels, in conjunction with increases in RSI and volume, generally result in significant upward price movements.
Although the market is approximately at its current level of $1.16 trillion, the macroeconomic indicators confirm that an “altseason” has not yet begun. The ISM PMI of 48.2 indicates that there continues to be an economic decline, and the current market is still in a “wait and see” position.
If the ISM improves in the coming months and the economic environment continues to express loose monetary policies, then early indicators of a potential altcoin rally in 2026 may begin to show up in the altcoin market.
Also Read: Bitcoin on Track for $250,000, Hoskinson Foresees Altcoins Following Suit
