5.16 Morning Market Analysis:
The AI sector has been in a correction for the 8th day, with the MEME sector experiencing the deepest decline. Yesterday, the market hit the bottom, and many people sold at a loss, confirming the saying: in the end, the winners are always those with diamond hands.
The Ethereum ecosystem performed well, with the leader $ETHFI rebounding strongly by 30% last night, and Eigen also rising nearly 20%, with hot money clearly concentrated in the Ethereum system.
$ETH is currently in a expanding triangle structure, having experienced two hour-level top divergences in the short term, and is digesting profits through sideways movement. Overall, it is biased towards strength, and after the consolidation ends, it is expected to continue rising. Key resistance levels are concentrated in the range of 2700-2850; only an effective breakthrough of this range will provide an opportunity to challenge 3000. In terms of operations, refer to the expanding triangle structure: shorting at the upper edge, going long at the lower edge, and strictly setting stop-loss levels for risk control.
In fact, making money is not complicated. When the market is trending upwards, choosing the right leading coins and holding onto them can lead to success.
🔥 Market Highlights:
1. Chain game NXPC has surged, adapted from the classic Korean adventure island IP (launched in 2003, 200 million users, $5 billion in revenue), with official investment only and no VC, resulting in highly concentrated chips. Although studios are making big profits, the gold farming income is relatively low. The similar game BigTime has a market cap reaching 5 billion.
2. On-chain Meme coins Startup (Believe platform, KOL Him's call) and Useless (Bonk platform, BonkFun founder's purchase) are rising in sync.
3. BN wallet today launched the TGE project Alaya AI, focusing on AI data annotation.
4. Market leader coins such as Moodeng and LaunchCoin have seen significant declines, reflecting that smart money is exiting the market, and market sentiment is becoming cautious.