Introduction
Yesterday, the crypto market underwent unprecedented turmoil, with mainstream coins and altcoins facing a crash, engulfed in fear.
However, with the market rebounding in the early morning, some quality assets are gradually strengthening. How to respond to such drastic fluctuations?
Spot holders have gained a breather, while contract traders may be ruthlessly liquidated. In this illogical market, the only way to stand out in future trends is to stay calm, choose targets precisely, and layout reasonably.
Let's follow the club's lead and review what happened in the past day!
1. Events Summary of the Past Day
Overall Market
The entire crypto market experienced a crazy crash yesterday. Although there was some recovery in the early morning today, the market is still in a relatively fearful state, especially among altcoins. The drop in altcoins can be compared to the crashes of 312 and 519. Even mainstream coins like BTC dropped to over 9200 dollars yesterday, which is indeed very frightening.
However, we can see how BTC has fallen and then come back, so if you're trading contracts, your position may be gone, but if you're holding spot assets, you are almost back.
At the same time, the drop in ETH yesterday was even more frightening. Ethereum's lowest drop exceeded 15% in a single day, almost dropping below 3100 dollars at its lowest. Looking at ETH's daily chart, we can see that all of Ethereum's gains since Trump took office have effectively been wiped out. Although there has been a strong rebound now, Ethereum's weakness is indeed very obvious.
DeFi Track
The worst hit should be the entire DeFi category. Firstly, UNI experienced a waterfall-like drop yesterday. Looking at the hourly chart, UNI almost dropped below 11 at its lowest. From the daily chart, we can also find that UNI's price has been consistent with Ethereum's trend, and it has almost returned to the starting point of this round of rise.
ENA also almost dropped below 1 dollar yesterday, but with the overall market rebound in the early morning today, ENA's strength in the DeFi sector is still relatively obvious, likely due to the recent collaboration between Trump's DeFi project and ENA.
One could say that the rebound in the early morning was strong for mainstream DeFi assets, with ENA being the strongest, followed by the recently launched COW. The rebound of COW has been the strongest among these mainstream assets, and it currently ranks in the top three on Binance's gainers list.
However, assets like AAVE, MKR, EIGEN, etc., have not shown any significant rebound, especially EIGEN. With Ethereum's weakness, these assets in the staking track are also performing relatively poorly. So the drop in Ethereum yesterday was indeed very frightening.
However, we can see that DeFi on the entire chain is still very hot. Currently, HYPE has reached a new historical high, exceeding 30 dollars, with the entire FDV also breaking 30 billion dollars. Including some tokens in the HYPE ecosystem, they are also on the rise, so it seems that DeFi projects on the chain are still maintaining a continuous upward trend.
MEME Track
At the same time, the entire MEME asset category also performed poorly yesterday.
First, let's take a look at Dogecoin. Dogecoin even almost dropped below 25 yesterday. We can see that Dogecoin's trend has been almost identical to that of Ethereum and UNI, so currently, the overall trend of the asset is also very unhealthy. Although it rebounded back to above 0.31 in the early morning, it is still at a relatively low position recently.
PEPE's performance has been even worse. Yesterday, PEPE almost dropped below 15. If we consider the crazy decline that started two weeks ago, PEPE has already seen nearly a 50% drop. Therefore, the overall weakening of PEPE recently is very obvious.
Regarding PUNT, we can see that Squirrel almost dropped below 0.5 yesterday, which is basically consistent with the price before it went on Binance. Since the Squirrel was listed on Binance, its price peaked at 2.5 and has been falling sharply since then. The Squirrel was listed on Coinbase last Thursday, and in just a week, the price has fallen by more than half. Even though it has rebounded to 0.7, it is still more than a 50% drop.
However, despite this, the club still has confidence in the MEME track, because MEME can increase several times a day, but it can also drop very absurdly. Therefore, as long as you haven't chosen the wrong asset and you don't frequently change positions or open contracts recklessly, it should not be a big issue to recover and make a profit in the future.
Binance Gainers List
Currently, we see that the strongest performer on the Binance gainers list is ZEN, which is a privacy asset, benefiting from positive news of Grayscale's purchase, thus remaining in an upward state.
Including the airdrop project MOVE for BNB holders, which was also about to break 1 dollar, touching its relative high.
Recently launched VANA on Launchpool also saw a 20% increase, as did ME, but these two assets are still very absurd compared to their previous drops.
Summary
So, at present, I hope everyone can pay attention to some risks.
I didn't expect that the much-anticipated altcoin season would come in this form, and I felt the crazy panic of many friends in the club.
I hope everyone can take note of these strong rebounding assets, as if the market continues to decline next week, these assets may also become the focus of attention.
However, if you hold spot assets, you might just be stuck for a few months. But if you're playing contracts, you really might not know how to manage. Although you can make a lot of money in the short term with contracts if you bet right, fundamentally, contracts are gambling.
So don't give away your hard-earned money to this market, which truly lacks any reason. The sharp drop yesterday and the rebound in the early morning really make no logical sense. Moreover, altcoins can be spiked to liquidate you, so the overall risk is still very high, and I hope everyone pays attention to related risks.