Interpretation of cryptocurrency market on May 10th, 2023Mainstream tokens continued to trade sideways yesterday as altcoins bottomed out. ETH pledges continued to rise at an accelerating rate. Since the Shanghai upgrade, there has been a net inflow of over 100,000 tokens. With Memecoins continuing to heat up, the rise in gas fees has also seen a significant surge in pledge earnings. Favorable for ETH and the pledging circuit, but the market is still not speculating on this.
The pressure and washout can also be seen yesterday in LDO's extreme trend. After a quick breakdown to smash out the panic market, it rallied back to the weekend price. ARB was slightly larger than 1 USDT, but the derivatives pins smashed through 1 USDT. This also means that users who stopped out and blew their positions at the derivatives round number mark have been cleared.
We can tell that the adjustment in altcoins is in place. The issue of exchange rates was also mentioned earlier. High-value altcoins have now reached the bottom range, both technically and fundamentally. Unless systemic risks bring down the overall valuation, the subsequent sustained rise is a probable event. And all that needs to be added to start this leg of the market is an opportunity. It could be a specific message or a significant rise in one of the leading tokens.
But the follow-up, whether it's an exchange rate fix or favorable cashing in, is still seen as the last leg of the year's rally. The position reduction should still be done in batches during the rally.
