Flipster Crypto Weekly (11 October)

11 October 2024

Crypto Markets Decline as Fed Signals Caution

Crypto markets largely dismissed last week’s strong jobs report, starting the week in decline. Early signals from the market's reaction suggested a more conservative Fed, a sentiment reinforced by the mid-week minutes indicating a cautious stance from the committee. It now seems increasingly unlikely that we will see another aggressive 50-basis-point rate cut as the labor market remains robust.

The shift towards a more measured approach raises an important question: will it dampen the risk appetite of crypto investors and traders? 

Bitcoin (BTC)

Weekly performance: -0.34%

Year-to-date (YTD) performance: +43.16%

BTC started the week with a long upper wick on Monday’s daily chart, signaling resistance in the $64,000–$65,000 range—a level that has previously been rejected, most notably at the end of August. As of now, BTC is hovering around the $60,000 mark, a key psychological support level. This coincides with the 50-day moving average (MA), suggesting potential buying pressure and demand at this level.

Ethereum (ETH)

Weekly performance: +2.15%

Year-to-date (YTD) performance: +5.16%

ETH continues to lag BTC and SOL in price performance. In fact, both BTC/ETH and SOL/ETH pairs are in a strong uptrend (prices above the 50 & 200MAs) to see the outperformance.

During the week, there were multiple price rejections at the 21 & 50MAs. A key price level to pay attention to is the $2,400 level which has been both support and resistance for prices in the past couple of weeks and months.

Solana (SOL)

Weekly performance: +3.54%

Year-to-date (YTD) performance: +39.28%

SOL began the week on a strong note but encountered resistance at the 200-day MA and closed significantly below its intraday highs. This early selling pressure set the tone for the rest of the week, with prices declining until finding support around the $138 level.

Thursday’s doji candlestick suggests a potential temporary bottom for SOL, but the crypto still faces the challenge of working through key moving averages, which could act as resistance in the near term.

Kaito narrative mindshare heatmap for the past 7 days. Source: Kaito.ai 

Meme

Memecoins continued their resurgence in popularity, securing the second spot in Kaito’s narrative mindshare for the week. This renewed interest may be attributed to Murad’s talk on memecoins at Token2049, or perhaps it reflects a more risk-on attitude among investors and traders, spurred by expectations of a dovish Fed. This shift has fueled not only the rise in memecoins' market capitalization but also their growing presence in overall mindshare.

Meme coins market capitalization over 30 days. Souce: CoinMarketCap

One of the standout performers in the memecoin space this week is WIF. Investor and trader demand for the dog-themed memecoin remained robust, with the early-week decline met by strong buying at the 21-day MA. As of this writing, WIF is leading the recovery among memecoins.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.