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🤔 Quick bounce to $0.02?
🐻 Or a drop below $0.01?
ALT Under Pressure: Why is AltLayer falling and where is the bottom? 📉
As we move into early 2026, the AltLayer (ALT) token has faced a significant correction, sparking concern among holders. While the Rollups-as-a-Service (RaaS) sector continues its technological evolution, the token price is showing the opposite trend. Let’s dive into the reasons behind the slump and the asset's future outlook.
1. The Liquidity Factor: Token Unlocks Pressure
The primary fundamental factor weighing on ALT is the scheduled token unlocks. As large batches of tokens are released to investors and the team, supply is sharply outpacing demand. Amidst current market volatility, many recipients choose to de-risk into stablecoins, creating a massive "sell wall."
2. BTC Dominance and the Altcoin Bleed
Driven by current macroeconomic expectations, liquidity is rotating back into Bitcoin. BTC dominance remains high, which traditionally leads to "bleeding" in ALT/BTC pairs. Investors are temporarily lowering their risk appetite, favoring more conservative assets.
3. Technical Outlook: Bearish Trend
From a technical analysis standpoint, ALT has breached critical support levels:
Support Zone: The previously held level around $0.013 has been broken, flipping it into a strong resistance.
Indicators: On the daily chart, the RSI is in oversold territory; however, there are no clear signs of a reversal (bullish divergence) just yet.
4. Cooling Restaking Hype
The decline in ALT is also linked to a temporary cooling of interest in the EigenLayer ecosystem and restaking solutions. Since AltLayer is deeply integrated with Actively Validated Services (AVS) infrastructure, any stagnation in this sector directly impacts the token's valuation.
💡 What’s Next?
Despite the current drawdown, the project remains a fundamental leader in its niche. For a trend reversal, two conditions must be met:
Holding the $0.0105 level: This is the historical psychological floor.
A drop in BTC Dominance: The start of a true "Altseason" will bring buyers back into high-tech projects like AltLayer.
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Disclaimer: This material is not financial advice. Always do your own research (DYOR) before making investment decisions.
