A new week has begun. Although the overall market is in a volatile adjustment, new coins are beginning to show signs of breaking through after a round of cleansing, especially for Meme tokens. Many people fall into a misunderstanding, thinking that a coin has a high market value or a high price, and therefore it will not have much room for growth.
But the fact is that the market value we see is virtual value, and the price is just the transaction price. In theory, the dealer can take two funds, one for buying and one for selling, and then transfer the money from one hand to the other to raise the price of the currency.
For the dealer, the key is to grasp the long-short relationship, or the supply-demand relationship, and gradually sell the chips in a benign way. When you understand this principle, you will understand that a coin that has risen a lot can still rise even more.
In the early and middle stages of a bull market, you need to be bold. Cryptocurrency trading is a game for the brave, and only those who are bold can make big money. In the late stage of a bull market, you need to be careful, because people may come at any time, and you need to be able to control the profit retracement.
Here are my thoughts + brief descriptions of some of the top altcoins by market cap:
$BNB ：
- One of the best coins to hold during the bear market
- Probably a safer long position
- Increase position with new share issuance income, suitable for long-term holding of large funds
$SOL ：
- After BTC and ETH, the best currency to buy as the core of a spot portfolio
- Strengthened its position as the third largest cryptocurrency
- I expect SOLETH to go higher at the top of the cycle, but not by much. Higher risk than ETH, but higher reward
- This was my largest altcoin position before
$DOGE ：
- Bitcoin continues to fall and underperform BTC during the bear market, which makes me quite pessimistic about Bitcoin. But Bitcoin's strong momentum in March will not disappear
- When it goes up, it moves quickly and wildly, making it a difficult coin to hold and trade
- The consensus target is $1
- Not sure it will be achieved, but the yield curve is attractive given the upside potential
$ADA：
- It has been trending linearly downwards against BTC since its 2021 peak
- Narrative is basically dead, but the market cap is still huge, which makes it a comfortable short
- The danger is that there will be another L1 alternative season in December 2023, which may happen at some point, but the upside is still limited regardless
$TON ：
- As an ecosystem, Telegram has great potential because of its large scale and widespread distribution
- Even though the coin has entered the top 20, its popularity among crypto native users will remain very limited for a long time
- In my opinion, although the market value and FDV are already high, there is still a lot of room to go.
$SHIB：
- Market value is both its disadvantage and its advantage
- A Meme Token with a consensus second only to $DOGE
$AVAX：
- Poor performance during bear markets
- Can be seen as a SOL alternative
$LINK ：
- Nice project, but its huge market cap and long history mean limited upside
- LINK/BTC bounces back to support in April
- Follow the market
$DOT ：
- Alt L1, but older and with lower concentration
- Same as ADA, only down from BTC
- The current market value is still tens of billions, most of the time it is suitable for short selling
$TRX ：
- Old Alt L1 Founded by Justin Sun
- But since MC is $10 billion and has a lower market share, I would expect it to underperform, or at least not move significantly
- TRX/BTC is practically at the same level as in 2020
- Can be used as short-term hedging
$BCH ：
- BTC Main Fork
- Given its $9 billion market cap, I expect it to underperform in the short term
- BCH surged from a bottom of $100 to over $700, squeezing a lot of shorts in the process
- It rose against BTC before the halving but has been falling since then
- However, it is a potential candidate for a future ETF
$NEAR ：
- Alt L1 is from the previous cycle, but it got a second life as "AI alt L1"
- I like NEAR because the charts show it is strong against USDT and BTC and it is the de facto leading AI broker
- But the MC of $8 billion is a bit high, which limits its upside potential
$MATIC ：
- In the last round, it succeeded in becoming the first "pseudo" L2 project
- MATIC/BTC has been falling since February 2023
- The overall market sentiment towards MATIC is very bad
- $7 billion MC means this may not be the maximum pain yet (because $7 billion is high)
- No reason to buy it yet
$BABY：
- Leading New Cycle Meme Token
- An obvious goal is to match the market value of SHIB
- It has increased 20 times from its October price and currently has a market cap of $6.5 billion
- From May 2023 to early February 2024, it has been underperforming BTC, but the situation in cryptocurrencies is changing rapidly
$LTC ：
- Down only against BTC since 2019
- The downward trend is obvious
- Market cap is "only" $6 billion, so a 2x or 3x increase from now is not out of the question, but overall it's probably more comfortable to be short most of the time
Finally, here is a list of cryptocurrencies to watch for the coming week:
$COIN - Coinbase Smart Wallet will be launched on June 5. It promises a better on-chain user experience
$MINA - Mina's Berkeley upgrade will go live on June 4th. This will enable ZK smart contracts on Mina
$PENDLE - Pendle's TVL continues to hit new highs + new yield trading integration coming soon
$ARB - A proposal to upgrade Arbitrum Sepolia to Stylus has just gone live. Stylus will enable Arbitrum developers to write smart contracts in a new programming language
$FET, $AGIX, $OCEAN - The largest crypto AI projects will complete the token merger on June 13
zkSync - Rumor has it that zkSync will release its airdrop checker next week
Remember, if you view your position as a long-term investment, a market drop should be viewed as a gift. It provides an opportunity to buy more tokens.
Finally, it is crucial to have a strategy before making any purchases, and never invest all of your money.
I hope this topic is helpful to you. 🙏Thank you for your likes and support👍
