Crypto Markets Today: Bitcoin Tests Resistance as Memecoin Trading Heats Up

Bitcoin Retreats From Recent High as Altcoins and Memecoins Draw Risk Capital

Bitcoin (BTC $91,900) slipped after briefly touching its highest level since mid-November, once again stalling near a technical zone that capped advances in early December. The rejection has attracted short-term sellers, though some traders continue to watch for a decisive break that could open a path toward $98,900 — a former support area that held between June and November.

While bitcoin paused, risk appetite appeared to rotate into other parts of the market.

Altcoins and Memecoins Outperform

Sui (SUI) extended gains, rising more than 3% since midnight UTC and about 16% over the past 24 hours. XRP maintained its strong momentum, advancing roughly 29% since the start of the year as the token reached multiweek highs.

Speculative activity was especially pronounced in memecoins. Trading volume on Solana-based token issuer Pump.fun climbed to a record $1.27 billion, underscoring a resurgence in retail participation. The CoinDesk Memecoin Index (CDMEME) rose 1.5%, lifting its year-to-date advance to 19%.

Short Covering Dominates Derivatives Flows

More than $400 million in crypto futures positions were liquidated in the past 24 hours, with shorts accounting for most of the losses — a sign that bearish positioning into the new year was caught offside.

Bitcoin futures open interest held steady near 660,000 BTC, suggesting limited new leverage at current levels. In contrast, XRP open interest jumped to 2 billion XRP, the highest since Oct. 11, pointing to fresh capital flowing into the token as prices rallied.

Funding rates across most major cryptocurrencies remained modestly positive, consistent with a constructive bias, though negative rates in SOL, TRX, ZEC, SHIB and UNI highlight pockets of growing bearish bets.

Volatility remained subdued. Volmex’s BVIV index, which tracks 30-day implied volatility in BTC, eased back toward 44% after a brief uptick. On Deribit, traders continued to favor upside exposure, with reduced demand for puts in BTC and ETH and block trades dominated by call spreads and BTC strangles.

Token-Specific Themes Emerge

After a difficult 2025 marked by steep drawdowns, memecoins are again attracting attention. In addition to Solana-based tokens, activity has picked up on BNB Chain, where traders are rotating into predominantly Chinese-language projects grouped under the “Four Meme” label popularized by Binance founder Changpeng Zhao.

Outside the meme segment, Sui drew renewed interest after Mysten Labs published research on privacy-preserving blockchain transactions, fueling speculation that enhanced privacy features could eventually be integrated into the network.

CoinMarketCap’s altcoin season index rose to 27 out of 100 — still signaling a bitcoin-led market, but well above December’s low of 14, indicating early signs of broader participation. Even so, elevated relative strength readings across several tokens suggest the rally may face near-term consolidation as profit-taking emerges.