BALD brings new FOMO. After the BASE mainnet is fully opened, will the inflow of funds make BALD the next PEPE?
Base, an L2 network which powered by Coinbase and OP opened its mainnet to developers on Jul. 13 and plans to officially release the mainnet to the public in early August.
Over the weekend, the meme coin BALD on Base pumped nearly 1,000x in one day. Its current price is $0.05. Under this influence, the TVL of BASE displayed on DefiLlama increased to $39.28m in a single day and the liquidity pool of BALD on LeetSwap contributed about 80% of the TVL. These numbers are very exaggerated for a network that is not fully public.
The daily transactions of BASE have risen to nearly 0.7m. Almost 14x the previous average number of daily transactions. These numbers are amazing for a network that is not fully public.
Although 24 hours have passed since the fair launch of BALD, according to the data published on DEXSCREENER, buyers are still ahead of sellers. The mainnet will be open to the public soon. More funds will flow into the BASE network and swap BALD.
It can be seen that as a meme coin, except for the 29.56% of tokens held by the liquidity pool, only one address exceeds 20%, and the remaining addresses hold less than 3%. The concentration is not obvious.
It should be noted that there is currently no official cross-bridge that can directly bridge funds to BASE. Funds need to be transferred to a contract. And except for BALD on BASE, the market value of other assets is small. It is risky to bridge funds to BASE before it is fully public.
Technical Analysis
Next, we conduct a brief analysis through the 1h scale.
This brief analysis is on the 1h scale, so the analysis method will be different from the previous ones. We will judge support and resistance levels based on the strengthening and decaying of bulls and bears on the band.
The price started to correct from the high of 0.087 after the initial significant rise. When the bears gradually strengthened and the price approached the green line, the bulls strengthened, forming a V-reversal. In the course of the price rise close to 0.07, the bears have decayed significantly. The number of red candles is few, and it is accompanied by low trading volume. In such a case, the bulls missed the first opportunity to hold the rise(shown by the green dotted arrow 1). The price entered into a correction again. At this stage, the bears gradually decay. You can see that the length of the red candle gradually decreases. And then, the bulls missed the second opportunity (shown by the green dotted arrow 2). Afterward, the bears strengthened, a long red candle appeared and the confirmation of bears was formed.
Conclusion: Mostly fluctuation and the possibility of falling is greater than rising. The gap between bulls and bears is not obvious recently and we think there is a high probability of fluctuation. Historically, bulls have missed key opportunities when bears have decayed. So we reserve the possibility of a downside. We set the resistance level on a 1h scale at 0.05869, the bearish confirmation point. And set the support level at 0.046, the low of the V-shaped reversal.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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