Rising Altcoin Inflows Signal Potential Market Sell-Off: CryptoQuant

Highlights:

• Inflows of altcoins in exchanges have surged by 22% in early 2026.
• An increase in deposits indicates a growing sell-side pressure.
• The crypto sentiment is changing with increasing altcoin inflows.

Exchange altcoin inflows in the crypto market have been on the rise in 2026. Data shared by CryptoQuant shows that the inflows to exchanges went up by 22% compared to Q4 2025. This change draws concern over rising sell-side pressure.

The average daily deposits stand at 49,000, indicating selling intent. The traders are moving assets to exchanges, potentially anticipating volatility. Such a trend generally signals that the altcoin holders might be intending to sell.

Altcoins Display Distribution Pressure

Historically, the increase in exchange deposits implies that the market mood is shifting. When the altcoins are moved to exchanges, they are usually positioned to sell. The data indicates that there is a continuous curve of rising altcoin deposits between Q2 2025 and early 2026. The maximum daily average is 49K, which is the highest average of the data.

This increase in inflows further implies that the market players could be anticipating price corrections. There is greater liquidity as additional altcoins hit exchanges. However, without an increase in demand, the imbalance may result in downward pressure on prices. Most traders tend to act before the market conditions deteriorate, anticipating possible sell-offs.

Rising Sell-Side Pressure Indicates Market Shift

That 22% growth in exchange deposits is consistent with a major change in market psychology. The holders of altcoins are probably taking money or offsetting their positions. With the crypto market embracing uncertainty, such changes usually herald corrections in the market. Historically, such a sharp increase in deposits has contributed to market volatility.

Moreover, as the altcoins continue to be distributed under pressure, it is obvious that traders are planning to sell more. The decisions by investors to shift coins to exchanges are regularly aligned with weakened confidence in the market beyond Bitcoin. This trend implies that volatility can increase within the next few months.

Altcoin Sell Pressure Hits 5-Year High

The Crypto Fear and Greed Index has declined to 14, which represents extreme fear in the market. This sentiment is reflected by a decrease in the market capitalization to lows of $2.30 trillion from $4 trillion. These conditions contributed to a higher volatility in the past and might trigger long-term investors to begin accumulating assets.

Additionally, there is a severe sell-off in the altcoin market, where the pressure has hit a five-year extreme. Altcoins have experienced net selling in centralized exchange spot markets over the last 13 months. As a result, retail engagement is not present, and smart money is moving to less risky assets.

Is a Major Altcoin Dump Coming?

The increase in altcoin exchange inflows in 2026 indicates that there is sell-side pressure accumulating. The price of altcoins may start declining as liquidity grows and market sentiment deteriorates. Although crypto cycles may have volatility and market corrections, the current trend indicates that there is the possibility of an altcoin sell-off.