BTC and ETH may take a breather as other alts prepare for liftoff

We will then dive more into and focus on some altcoin opportunities. 

Let's go! 

TLDR

• Bitcoin and Ethereum take a breather below key resistance levels, our analysis identifies emerging altcoin leaders poised to capitalize.
• Solana retains its bullish structure, with $117 serving as the key accumulation zone for its next leg higher. 
• RUNE clears significant hurdles with its eyes set on all-time highs - we mark $5.36 as the buy spot amid any cooldown. 
• RNDR registers extremely overbought readings after its parabolic ascent, making the $5s a target zone for securing discounted bags.
• NOS continues respecting its uptrend amid early price discovery, with our model signaling the $3.50-$3.90 area as offering the best risk-to-reward for entering new positions. 
• Finally, OP's correlation with Ethereum paints it as a top beta play for riding any recovery momentum; $3.22-$3.31 shapes up to be the ideal dip-buying spot.

Mechanics

Not much has really changed here, still looks quite overcooked i.e, Funding Rates and Open Interest are both very high. 

What this means is that there is a lot of built-up leverage and most of it is positioned Long (rather than Short), this is shown by the Funding Rates being far greater than 0.01% - Longs are paying an ever-increasing premium to Shorts to be in that position. 

The result of this usually is that we see a flush out. The reason is that with a lot of leverage, you often get a lot of tight Stop Losses. So, if price does come down just a few percent, this may then hit a number of Longs' Stop Losses, which then causes a spiral effect as price drives lower from the closing of those Longs, and then a decreasing price inevitably hits more Longs' Stop Losses, etc, you get the picture - the spiraling effect. 

This is what we then refer to as a flush-out.

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BTC and ETH 

Taking the above onboard as context to then assess BTC and ETH based on technical analysis. We can see that both BTC and ETH now look to be at local tops, with both hitting key horizontal resistances. BTC's horizontal resistance is $63k, whilst ETH's is $3,500. 

Assessing the above, we're not looking to take out any fresh leverage Longs in BTC or ETH, although we're very happily still holding Spot bags.

BTC

ETH

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SOL

• Mechanics-wise, SOL also has a high Funding Rate with the Open Interest also being relatively high, although its levels are at perhaps slightly less worrying levels than BTC and ETH.
• Clearance above the $117 level was key for SOL to try and make a second major leg higher.
• The $131 level may act as support/resistance over the coming days. We would expect that if prices do pull back, that $117 should act as new support, having been prior resistance. $117 would be a buying level for us.
• If SOL does push higher, $151 is the target, a clear move above opens the door for SOL to push to its all-time-highs. But we, do not expect this imminently.

Cryptonary's take

Out of the majors, if we were looking to add today, SOL would be the one we have our eyes on. Ideally, we'd look for a slight pullback to around $117 to add SOL. If SOL were to make this pullback to $117, it would look attractive, especially in comparison to BTC and ETH, which we expect will have a pullback soon. Long-term, we're extremely bullish on SOL.

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RUNE

• RUNE has performed relatively well recently having shown strength to get above the $4.78 horizontal resistance and the $5.36 horizontal resistance.
• Alongside this, RUNE is in a clean uptrend which it has respected so far.
• If RUNE does pull back slightly, you'd want to see the $5.36 level, which will also have convergence with the uptrend line, hold as support. If it does, this would likely help fuel a sustained rally.
• The major horizontal resistance remains $6.53, if RUNE can clear this level, then it opens the door to price discovery beyond $7.

Cryptonary's take

If you're under-exposed to RUNE and you like it for the long term, the $5.36 level may be a nice local level to add to your bags at. Ultimately, the $4.78 area will need to hold otherwise the above thesis is invalidated. But, we expect this area to hold and for RUNE to potentially push higher and at least onto $6.53. 

What may also invalidate this is if BTC and ETH have more substantial pullbacks. Just something to be aware of here.

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RNDR

• A really strong up move here from RNDR.
• On the larger timeframes, RNDR is very overbought, but considering how strong its performance has been, we'd look to be a buyer of pullbacks, if they come.
• The level we have identified as pullbacks is the Yellow box between $5.24 to $5.55.

Cryptonary's take

A pullback to $5.24 to $5.55... yes, we're asking a lot, but that is where the Yellow boxes measure out to be, and we trust in the Yellow box strategy. If price makes new highs, then the Yellow box will be measured higher.

If RNDR does have a meaningful pullback, into the $5s, price likely won't stay there for long, so if you want to take advantage of an RNDR pullback,  it may be wise to leave USD orders in the $5s and hope that they fill if we do so some kind of flush/larger move down.

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NOS

• This is a personal favourite of our Head of Analysis, which has performed very well recently. We will look to add to our bags on any major pullbacks.
• NOS is respecting a nice uptrend, whilst that remains intact, price can continue with bullish momentum.
• NOS is very overbought on the larger timeframes, so a pullback to reset some of these trading metrics, wouldn't be too much of a surprise.
• We have identified a potential buying area in the Yellow box between $3.54 and $3.92. If price were to retest this area, we'd be buyers, particularly if current exposure to NOS was low.

Cryptonary's take

If there is a major pullback for NOS, we'd look to accumulate NOS in the Yellow box. Currently, NOS has a $500m Market Cap, but a pullback to the $3's would see NOS's Market Cap pullback to the $300m area. We would consider this an attractive price point for entry, with the potential for a much bigger upside from that level.

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OP

• OP may be a good beta play to ETH.
• OP is holding a long-term uptrend, while also in a local uptrend. This is all positive and should help to fuel further upside momentum.
• The RSI is not overbought on any of the larger timeframes, so it's possible that price can move higher from here, even in the short term.
• To the downside, we see the local Yellow box and the local uptrend line as likely to act as support for price in the short term.

Cryptonary's take

ETH has moved phenomenally well over the past month, it's therefore likely that traders will look for ETH beta plays. OP may be the number 1 contender for this. We have therefore identified a level of interest to either begin building a position in OP or to add to your bags. This level is the local Yellow box between $3.22 and $3.31. Cryptonary has an upside price target for OP at $30 at the peak of the bull market.