From Bitcoin's bullish charge to memecoin mania

The real star of the show is Solana. Although the open interest and funding rates flash caution signs, the unwavering bullish conviction suggests a breakout could be imminent. Dive into Solana's exciting ecosystem with promising plays like RNDR and NOS, both presenting enticing entry opportunities.

But let's not forget the memecoin mania sweeping the crypto world! 

DogWifHat (WIF) has cemented its status as the bluechip meme coin, poised to capture the imagination of retail investors. And the feline sensation, POPCAT is mirroring WIF's early price action, hinting at potential explosive gains.

Sounds exciting; let's dive in.

TLDR

• Bitcoin's bullish momentum continues with healthy on-chain metrics despite leverage buildup.
• Ethereum faces a key resistance test at $3,525, with support at $3,200-$3,300
• Solana is showing strength, with dips presenting buying opportunities in SOL and ecosystem plays like RNDR and NOS.
• WIF is solidifying as the leading memecoin, primed for a potential retail frenzy.
• POPCAT is mirroring early WIF price action, hinting at explosive meme coin gains

 

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. "One Glance" by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. These are not signals, and they are not financial advice.

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BTC

• Bitcoin's Funding Rate is slightly above the healthy level of 0.01%, currently 0.03%. But this is fine in a bullish environment.
• The Open Interest has increased again to $35.5b, just shy of the high of $36.2b. This indicates a sizeable leverage buildup again. We will have to keep an eye on this, especially if Funding dramatically increases alongside this.

Technical analysis

• BTC price-action-wise holds a positive structure, even though I feel we may break down.
• The key level to hold above—$69000 has remained intact so far. It was the prior horizontal resistance, which is now serving as support. If this level is lost, we can expect a retest of $66,000.
• There is a horizontal support at $63,400, with a larger support between $59,200 and $60,700, but we're not sure if this zone will be reached if there is a pullback.
• A break above $73,500 would likely see a relatively swift test of $80k.
• The RSI isn't concerning as it is in the middle territory, so this shouldn't act as a headwind for further upside.

Cryptonary's take

While we remain bullish and believe we'll see higher prices in the coming months, we also feel that the door is open to potentially see slightly lower prices in the coming week or two. 

We expect that the $63,000 to $66,000 area will be support, with my personal opinion (Tom) being that $66,000 itself should be good for support. As we have been calling for, we have had this period of consolidation for prices between $60,000 and $70,000, with us mostly in the top end of this range. Upon a breakout of $73,500, we expect $80,000 to be swiftly achieved. For now, we continue to hold Spot bags, with no intention of selling them anytime soon. If BTC hits $63k or below, we will add more to our bags, although we don't expect to see $63k or below this price.

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ETH

• ETH's Open Interest (the amount of leverage in the system) has also increased, but not to alarming levels or even levels that we'd consider particularly high. This suggests to us that there isn't currently a high chance of a leverage flush out.
• The Funding Rate is north of 0.01% but, again, not at a rate that is considered particularly high, considering we're in a bullish environment. The rate is currently at 0.0275%.

Technical analysis

• ETH is commencing the battle at the key horizontal level that we have outlined for a long time, the $3,525 level.
• We did see ETH locally break above $3,525 before forming a bull flag and breaking out higher. However, price has pulled back and is now retesting the $3,525 horizontal level as support.
• If price can hold above $3,525 in the short term, then this level should act as a floor to send price higher on a local timeframe to $3,900. If not, then we expect the $3,200 to $3,300 zone to be retested again.

Cryptonary's take

Again, with ETH here, we're relatively content to hold it whether it breaks higher or lower in the short term, as our conviction is that it'll be considerably higher in the mid-term. 

My (Tom) personal preference is to be more bullish on SOL than ETH, so I am not looking to add ETH. However, for those who are, the $3,200 to $3,300 level is the level we'd target for more adds to Spot positions. 

For now, we're not looking to sell Spot bags and are looking to ride our bags higher as we expect a break above $4,000 in the medium term (next 2-8 weeks).

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SOL

• Yesterday, SOL's Open Interest was the highest it's been at a whopping $2.86b, yet still substantially less than Bitcoin and ETH's Open Interest.
• The Funding Rate is also high for SOL here at 0.035%. This isn't quite at the levels where you'd say SOL is approaching the level where it'd be vulnerable to a leverage flush out. But, if we see OI and Funding increase much further, then SOL will be vulnerable to a flush-out.

Technical analysis

• SOL broke out higher from the bullish pennant structure but has found resistance once again at the horizontal level of $205.
• There is local support between $190 and $195, but there is more major support at $180.
• The upper Yellow Buy Box has been filled, and while it may be retested, we don't see that as the likely scenario.
• The RSI is in the middle territory on smaller and mid-timeframes, but it remains overbought on the 3D and the Weekly, having also put in bearish divergences, so this is a slight concern.

Cryptonary's take

Even though the larger timeframes have put in bearish divergences in overbought territory, we remain positive on SOL. 

We continue to hold Spot positions and will look to add to SOL ecosystem plays. To ignite the full bull mode, we'll need a clean break above $205 and for SOL to make a move up to $255. We believe that this will happen; we're just not sure how much consolidation or even a slight pullback in price we get in the short/medium term first. 

Overall, we remain very bullish on SOL and the SOL ecosystem. We're not looking to sell Spot bags anytime soon.

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RNDR

• RNDR has been one of the strong SOL ecosystem plays and performers of late. Perhaps soon, we'll be presented with a nice opportunity to get into RNDR.
• RNDR has broken below a local uptrend line, and price is now dipping into a supply zone between $10.00 and $10.50.
• We have the Yellow Buy Box positioned between $8.90 and $9.40. This is where we'd layer Buy Orders for RNDR.
• The RSI is towards the bottom of its range at 39 on the 12hr, whilst the 3D and the Weekly are no longer in overbought territory. This is a more positive setup.

Cryptonary's take

RNDR is a strong performer in the SOL ecosystem, and we'd like to have exposure to it. 

The gains may be slightly less in RNDR in comparison to smaller cap coins as RNDR has a Market Cap north of $1b, however, it's a solid performer and play in the SOL ecosystem.

We'd look to get or increase exposure to RNDR if price enters the Yellow Buy box between $8.90 and $9.40. We wouldn't look to build a huge position, but we'd also look to build a relatively mid-size position in RNDR. This would give us further exposure to the SOL ecosystem while also diversifying slightly into another coin/play.

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NOS

• NOS is another SOL ecosystem play, currently in its Yellow Buy Box between $4.00 and $4.70.
• NOS may break below its box and potentially even test as low as $3.50, but we would be looking to increase our position at the current price and also if price does go lower.
• Price formation-wise, NOS has quite a nice structure in that it's in a main downtrend. Once price breaks out from the downtrend, we'll likely see a significant upside. The question is, if we get more downsides in the short term, potentially, we will reach $3.50.
• The RSI is clean on all timeframes, so this shouldn't pose a headwind for price going higher/breaking out.

Cryptonary's take

This is a similar thesis to RNDR in that NOS is a good SOL ecosystem play. We'd look to get/increase our exposure to NOS at current prices and continue adding even if the price declines to $3.50.

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WIF

• WIF has absolutely cemented itself as a bluechip meme and is likely to be the main player for this cycle. We see it as likely that this is the 'new' meme that retail apes into when they come back in.
• WIF broke out from its bullish pennant-like pattern and surged into the $4s while holding a really nice uptrend.
• We'd like to see WIF hold between the $4.00 to $5.00 range, although there is a Yellow Buy Box between $3.25 to $3.42. We don't see it as super likely that this box will be filled, but it may be worth leaving buy orders there just in case we see a flush out.
• Ultimately, we see WIF moving higher with the next major level, and potential new resistance being the $5.80 to $6.25 level.

Cryptonary's take

If you've been in WIF from early on, our suggestion would be to continue riding this out, and we won't be looking to sell Spot bags anytime soon. In terms of getting in, if you have no exposure, we'd suggest the Yellow Box, but if you do have big exposure to POPCAT, then it may not be worth massively increasing your meme coin exposure by buying into WIF.

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POPCAT

• Following yesterday's phenomenal move higher, POPCAT is attempting to establish itself at its prior highs of $0.38.
• The $0.33 to $0.38 zone is likely to act as a good support for POPCAT's price. Therefore, we'd be looking for this level to hold in terms of any price retracement.
• In terms of building on and forming a more bullish structure, price holding and establishing itself above $0.38 would be big in terms of forming a base that it can move higher from in the coming days/week.
• The next major target in terms of upside would be $0.55.
• If there is a more meaningful breakdown, we'd expect $0.26 to be strong support and significant buying come in at this level.

Cryptonary's take

POPCAT's price action looks eerily similar to WIF's before it had the large move up from $0.40 to $1.80 in just four days. 

Now, we're not suggesting that that will happen for POPCAT, but overall, the price action has been very good, and POPCAT has shown strength when needed. We're also seeing the rise of other cat coins, and many on the socials are targeting POPCAT as the number one cat coin for their cat coin to flip.

It's crazy, but it's also a form of recognition that POPCAT is the number one cat coin in the space, with memes getting the mass attention of the crypto market. If you've been in POPCAT from early on, I'd suggest holding this. We're not looking to sell Spot bags anytime soon. If SOL can hold up and even break higher, then this would be phenomenally bullish for POPCAT and likely send it to $0.55 in the coming weeks. 

Memes are difficult to call, so let's see what we get. For now, all is positive, and I am holding Spot bags calmly.