While not all altcoins rally in tandem yet, some of the top crypto assets have outperformed late in the day.

Case in point: CoinMarketCap data from the time of writing this post, XRP — market capitalization’s third-largest cryptocurrency — is up 10 percent in the past 24 hours, outpacing the relatively mild 0.5 percent increase from Bitcoin.

This rally is unlikely to continue in some of the leading altcoins, with crypto firms seeing a strong decline in on-chain operation for coins such as Cardano, Bitcoin Cash, and Chainlink.

Top Crypto Assets See Sluggish On-Chain Activity

Altcoins have seen remarkable gains across the board over the past couple of weeks, as Bitcoin has stagnated in the high-$6,000s and $7,000s.

Out-performing altcoins include Cardano, Chainlink, and Tezos. Although Bitcoin tackled 15 percent, all of the multi-billion-dollar assets listed in the cryptocurrencies experienced gains from 45 percent to 65 percent.

Many of these moves were predicated on fundamental project-related changes, but on-chain and market data show that there is an increasing risk of a decline.

IntoTheBlock — a blockchain analysis company — finds that for some leading crypto-assets, a number of its proprietary signals are “mostly bearish”

Below is Cardano’s dashboard as of 28th April.

It suggests that the “Large Transactions” — which monitors multi-million-dollar transactions on the blockchain. And “Bid-Ask Volume Imbalance” the skew of a market’s order books suggest bearish price action is on the horizon. While most of the other signals are mostly moving bullish.

Similar trends were spotted for Bitcoin Cash and Chainlink, both of which were reported by IntoTheBlock as “mostly bearish.”

All Altcoins Could Fall

It is important to note that the above signals indicate only that a short-term altcoin correction is imminent. But some fear that this underperformance may be a longer-term phenomenon for the entire crypto sector.

An analyst at the crypto research firm Blockfyre recently remarked that he plans to minimize his exposure to altcoins as he suspects that the reduction in Bitcoin’s block reward would result in uncertainty leading to altcoins “getting rekt.”

The analyst continued that from the way he sees it, altcoins are always a “game of musical chairs”. Because the reasons they rally, Pentoshi clarified, are all “red flags”

“The reason the alt pumps are unconvincing is because they have followed the same patterns. IEO’s, Interoperability, privacy coins moving together. It’s coordinated as it has been the last 3 years instead of all ships rising together.”

Others have reiterated this skepticism by pointing out. How the key narratives in the crypto industry are all based on Bitcoin. A bellwether for the rest of the industry, particularly in such unpredictable macroeconomic and geopolitical times.