Feeling a bit Meta
4 min read

Feeling a bit Meta

Cryptic ball: feeling a bit dumpy.

I was writing that not much had changed since yesterday, but BTC just ruined the party. Let's recap. To begin, meme coins continue to pump, especially fellow canine projects among Ethereum's competitors, such as Solana's SAMO. True, the original SHIB is down 15% since yesterday's 70% pump, but the overall market resembles last May. Then, bitcoin had nicely bounced at $58k and then paused around $61k - a diagonal resistance similar to that which plagued September, charted below. That was normal, but to complicate things BTC has just dumped 6% in 15 minutes as I was about to press send. Now, should you worry?

So far, it is bouncing back, making it look like it was just a liquidation-focused move aimed at triggering the stop orders at $57k that I talked about yesterday - also curiously timed to match Marc Zuckerberg's announcement that Facebook will change its name to Meta and its ticker to MVRS. But the ensuing volatility may further scare traders. Yes, it's true that the market is not that overleveraged and Open Interest is not that high as most think it is, as Alex Krüger explains due to new ETFs. And it's also true that greed levels are also calming down a bit.

But the generalised euphoria makes me wonder whether we'll see a generalised rinse this Halloween. That's why, if we don't get a good bounce until today's daily close (UTC time) I'll be preparing my hedges going into the weekend, ready to bark at the moon in case we clearly move out of the woods. Meanwhile, I remind you we're not at the top yet. But, as SHIB is definitely reaching a top, as explained in below's tweet tip, I'm reminded of something important for the final stages of this bull run: community. Because the coins that pump the hardest are the ones with the strongest backing from the crowd.

Naturally, it's not only animal tokens that follow that rule. As volatility will drive people away from the wild moves of SHIB and its friends, hopefully back to Layer-1 blockchains, it's time to go back to the Battle of the Protocols, which I first covered here on April 26th - illustrating the nine hottest Ethereum killers, and highlighting Solana. Back then, SOL was priced under $25 and Mark Zuckerberg was a couple of months away from announcing it would transform Facebook into a metaverse company. Well, the protocols that have appreciated the most since have been those who have invested more in their communities - through ecosystem funds, conferences, and VC support to the new projects.

So, as things get flimsy, let's put our research hats on and investigate those dApp platforms which are yet to announce plans to support developers and users and build an exciting environment for growth. I'll keep an eye on and share what I find with you, as there's nothing better than peaceful research when prices crash!

Chart art: feeling a bit channelled.

To be fair, the current dump perfectly hit the red line we have marked for months at $57.3k. Usually, that should do it. But something feels amiss, so let's keep an eye on funding rates.

Three things: feeling a bit bullish.

Tweet tip: feeling a bit careful.

This is what those who are buying SHIBN now are likely missing, so share it with your friends. It was a great trade last April, but it's too late. It's all about getting early.

Meme moment: feeling a bit memetic.

Memes and community.

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Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of guidance in the report will lead to any particular outcome or result.