Bitcoin continues to rise sharply, constantly setting new highs, while the second coin also broke through its yearly new high during a surge early this morning. Many might not understand the current trend, feeling that the second coin is starting to catch up while altcoins remain stagnant. The overall market's low activity has led to lackluster altcoin performance, making it seem very 'garbage-like'.
However, the market will eventually come. The key is whether the second coin can continue to strengthen after breaking new highs. Once it stabilizes and continues to rise, even if market activity is low, altcoins will start to follow the second coin's trend.
At this stage, the most important thing is to hold onto your chips firmly, avoid easily switching positions, and prevent sold coins from skyrocketing while the bought ones are chasing highs. Particularly for newly launched coins, participation is not recommended; manage risks and proceed steadily.
But this repeated fluctuation is a precursor to stabilizing at 4000 magnesium and the altcoins taking off. Today's market focuses on observing:
1. New coin VANA: The dog trader pushed it to 35 magnesium last night before crashing it back to 26 magnesium, showing extreme volatility; caution is advised.
2. FTX restructuring: The restructuring plan will take effect on January 3, with FTT subsequently rising by 30%.
3. CRV dynamics: The founder has begun buybacks, which is beneficial for restoring market confidence.
4. BlackRock ETF: Continuous inflow of funds indicates that a major trend is about to arrive.
Hot project dynamics:
1. CAT: It surged by 80% yesterday and is currently stabilizing around 60%. As the first meme coin recently launched on BN, its performance is strong, with a market value of about 400 million magnesium.
2. BSC chain IP benchmark: If the BSC ecosystem is to rise, it definitely needs a flagship IP. DWF was one of CAT's market makers; after exiting, it announced a return today, further strengthening CAT's performance and potential.
Summary: The market is gradually building strength. Once ETH stabilizes above 4000 magnesium, the altcoin market could explode at any time, and CAT, as a popular project on the BSC chain, is worth paying attention to.
To discuss the overall market, let's take a look at on-chain data, as data does not lie!
Solana (SOL)
Recent performance has been weak, mainly due to the on-chain TVL only increasing by 13% this month. The ecological business is mainly focused on 'meme coins', but the meme coin season has not yet started, lacking a wealth creation effect. However, investments need to look at future potential. Once the meme coin season returns, Solana is expected to recover, similar to the situation when ETH was sluggish in the past. Technically, Solana is in an ascending flag pattern; right-side traders can wait for a breakout above the descending trend line to enter, targeting 320; left-side traders can accumulate on dips.
Ethereum and its related tokens
Recently experiencing a full recovery, the on-chain TVL increased by 40% this month, reaching 10 times that of Solana, with both price and volume rising. Especially AAVE, whose TVL has reached a historic high of 39 billion USD, far exceeding the previous bull market's 32 billion, yet its price is just over 300, indicating it is clearly undervalued. AAVE has little selling pressure, with 95% already unlocked, possessing long-term value, while the short-term rise is significant, so waiting for a pullback before entering is advisable. Additionally, DeFi projects like AAVE and UNI are quality essential assets that the market still undervalues. The Trump family's project WLFI also holds AAVE and has increased their holdings in ETH and ENA.
SUI
Although it has risen over 50% recently, the on-chain TVL has only increased by 26%, which is comparable to the market average. Its market value is approaching half of Solana's, posing significant overvaluation risks, making chasing highs unwise. In comparison, quality coins at the bottom like Pepe have more potential. The previously high-flying Puffer has retraced by 40%, and the current price is stable, making it worth considering to accumulate on dips.
Dogecoin (DOGE)
Long-term sideways consolidation, the market has been ignored, but on January 20, Musk will take office as 'Doge Minister'. As the date approaches, an explosion may occur. Currently, DOGE has already made a profit after a pullback, with obvious short-term opportunities. Additionally, ETH previously entered at the precise level of 3850, continuously capturing market fluctuations.
Currently comparing Bitcoin and Ethereum, I would choose Ethereum and its related tokens, as they hold certain advantages in terms of price and market positivity. Why do I say this? Let's take a look:
Positive news one: ETF upgrade
The Ethereum ETF is about to upgrade to a stakeable ETF, supporting physical creation. This news comes from ETF issuer VanEck, and considering the moves of giants like VanEck and BlackRock, they are likely to submit an ETF modification application after the new SEC chairman takes office. By then, a 20% rise in Ethereum is to be expected, similar to the previous surge of XRP due to ETF hype.
Positive news two: Prague upgrade
The Prague upgrade in March 2024 is a certain event. Historically, each upgrade has pushed ETH prices to double. Instead of speculating on uncertain market movements, it's better to seize such stable opportunities.
Technical aspects and expected targets
Ethereum has broken the previous high of 4100 and is expected to start a new round of main rising wave. The short-term target is at least looking towards the historical high of 5000, and after the March Prague upgrade, ETH is expected to surge to 8000. By then, small coins in the Ethereum ecosystem will also see a 3 to 10 times increase, which is definitely an opportunity worth seizing!
Today's article concludes here. Currently, we are in a bull market, with winds of change swirling. We share codes daily. If you're unsure how to navigate the bull market, feel free to follow for spot market codes and layout strategies, which can be shared free of charge.
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