Inevitable

Well, this one was to be expected. As I mentioned in yesterday’s article, the topping-out signs for Solana were beginning to show. In particular, memecoins were flooding the market at an alarming rate. As I mentioned, I chose to exclude the Solana memecoin market in favor of Fantom. I have also been researching Arbitrum memecoins and was already in HOOT when it exploded 600% alongside Arbitrum, Optimism, and other layer 2 chains.

I wasn’t expecting Arbitrum memecoins to begin rallying so soon. However, fortunately, I had begun researching the sector and gained at least one early exposure. On the other hand, Solana’s current retracement provides several desirable opportunities within the Solana ecosystem. In particular, I am thinking of Raydium, Decimated, Solanium, and other quality projects, including alternative DEXs to Raydium.

Many investors dread corrections. However, just as a bear market facilitates wealth creation, corrections provide the perfect opportunity to increase one’s long-term holdings. Discounts during the formative stages of a bull market are more of a blessing than anything else. However, only disciplined investors with a long-term view can appreciate such a scenario. Even in a bull market… there are corrections. To be candid, this is a relatively mild correction, historically speaking.

Bitcoin has only retraced 10% from its local high. As I have mentioned previously, a 30% to 40% correction is standard practice for Bitcoin during a bull market. My approach is to utilize these dips as best as I possibly can. The current correction is however more linked to Solana and other altcoins that have rallied exceptionally hard over the past few months rather than Bitcoin. That’s my opinion, of course. Bitcoin correcting to $41.6K is of course also a catalyst.

Leveraging Raydium

Regarding my approach, I have chosen to begin building a leveraged Raydium (RAY) position. I had wanted to accumulate a lot more Raydium below a dollar. However, the market moved a lot faster than I had anticipated. The current dip, paired with 4X leverage creates an opportunity to accomplish my goal, via an alternative, and more creative method. Ideally, I would have preferred actual accumulation. However, given the scenario, I am willing to compromise.

I also moved out of Solanium before the dip and rebalanced into a new micro-cap altcoin I have yet to announce. This project is however gaining a lot of traction, and I wonder how much longer it will remain within the micro-cap sector. Rebalancing is a practice not only reserved for bull market peaks but also as a way to protect profits, while simultaneously increasing exposure. This can also be partial and does not necessarily imply selling all of one’s holdings in favor of an alternative investment.

Final Thoughts

I will welcome a further dip, regarding RAY. However, regardless of what happens next, I am prepared to work with the market, rather than wrestling against it. This is where the concept of “building positions” is so vital and beneficial. Investors who choose to go all-in, often rob themselves of great opportunities. Anyway, that’s it for this one. Stay the course and don’t lose focus. See you next time!