Bitcoin Stalls at Key Level as Altcoins and Memecoins Lead Risk-On Push

Bitcoin (BTC $91,900) briefly rallied to its highest level since mid-November on Monday before pulling back, once again encountering resistance near a zone that capped gains in early December. While the rejection may encourage short-term bearish positioning, some traders are watching closely for a clean breakout that could set the stage for a move toward $98,900 — a former support area between June and November.

Even as bitcoin cooled, risk appetite strengthened across the rest of the crypto market.

Altcoins Extend Gains

Sui (SUI) led the upside among major altcoins, rising more than 3% since midnight UTC and extending its 24-hour advance to roughly 16%. XRP continued its strong start to 2026, climbing about 29% since Jan. 1 as momentum carried the token to multiweek highs.

Speculative trading activity also surged in memecoins. Daily volume on Solana-based token generator Pump.fun reached a record $1.27 billion, pointing to renewed retail participation. The CoinDesk Memecoin Index (CDMEME) added 1.5% on the day, lifting its year-to-date gain to 19%.

Derivatives Markets Signal Shift in Positioning

In derivatives markets, more than $400 million in crypto futures positions were liquidated over the past 24 hours, with short positions accounting for most of the total. The data suggests many traders entered the new year positioned for downside and were forced to cover as prices moved higher.

Bitcoin’s global futures open interest remained steady near 660,000 BTC, while XRP open interest surged to 2 billion XRP — its highest level since Oct. 11 — highlighting increased speculative and hedging activity as the token rallied. Funding rates across most major cryptocurrencies stayed modestly positive, reflecting a bullish bias, though SOL, TRX, ZEC, SHIB and UNI continued to show negative rates, signaling localized bearish positioning.

Bitcoin volatility remained subdued. Volmex’s BVIV index, which tracks 30-day implied volatility, slipped back toward 44% after a brief spike, indicating that markets remain relatively calm. On Deribit, demand for downside protection in BTC and ETH eased further as traders favored call options, with block trades dominated by call spreads and BTC strangles.

Memecoins and Sui in Focus

Memecoins have re-entered the spotlight after a difficult 2025 that saw steep drawdowns across the sector. Alongside Solana-based tokens, activity has also picked up on BNB Chain, where retail traders have flocked to largely Chinese-language assets grouped under the “Four Meme” label popularized by Binance founder Changpeng Zhao.

Outside of memes, Sui drew attention after Mysten Labs published research on privacy-preserving crypto transactions, sparking speculation that privacy features could eventually be integrated into the network.

CoinMarketCap’s altcoin season index rose to 27 out of 100 — still signaling “bitcoin season,” but a notable improvement from December’s low of 14. Even so, caution is warranted, with average crypto relative strength indicators flashing overbought conditions, raising the risk of near-term profit-taking.