Weekend market trends are essentially a game among retail investors, with no institutional inflows or outflows. If there are no news impacts over the weekend, it is likely that the market won't look too bad. Additionally, next week we need to focus on the Federal Reserve's meeting decisions. Currently, market expectations for interest rate cuts are still quite high, and unless something unexpected happens, a 25 basis point cut seems stable.
Choosing leading cryptocurrencies such as meme, AI, DeFi, Base, Solana, and Ethereum (the major chains), as well as Bitcoin's ecosystem, is important. This is because after significant rises there might be pullbacks, and after significant drops, there will be recoveries. Coupling this with news and liquidity will definitely create narrative rotations. The leaders also open up the valuation ceilings for all secondary to fifth-tier coins. This will create a synergy making it easier to identify the leading cryptocurrencies, especially observing Binance, as it is the largest liquidity provider. Then further filtering, the basic narrative ETFs are pretty much done (it’s also worth checking the trading volume of top tokens on platforms like Bybit and targets suitable for small leverage based on the three-market theory). For those seeking odds, a small position in leading tokens can adopt 2-3x leverage, which has relatively high risk and returns, a bit like chasing alpha on chains (not recommended for beginners).
What coins should we consider for potential opportunities? First, let's talk about AAVE and UNI, these two are quite daunting. Especially AAVE, which surged directly by 30% since Wednesday, and it seems that around the 380 mark is a resistance point where one could take profit at highs. UNI, on the other hand, closely follows the steps of ETH; I consider it as having 2x leverage built-in. I believe ETH will definitely break through in the future, so UNI also has great potential. We can check if it can get back on track above the 16 mark. My view on UNI and AAVE is that with the bull market arriving, DeFi trading volume is surging, so these sectors will benefit. Moreover, the rotation of sectors is very obvious now; previously, the Solana ecosystem was very strong, but now the hot rotation has moved to ETH taking off fully. The previously positioned ENS, Puffer, and UNI have all benefited greatly, multiplying several times due to early positions. These coins can be accumulated at lower prices, and once ETH breaks through later, they will rally again. Additionally, meme coins can also be buried; Doge has been consolidating for a long time, and Pepe is also decent; I have also stashed some. Let's wait for the next wave of altcoin season.