Discover how USDY, a yield-bearing stablecoin from Ondo Finance, offers secure, regulated returns backed by US Treasuries across multiple blockchains.

, which are crypto assets pegged to a major fiat asset, have gained tremendous popularity and are helping investors deal with the typical volatility of the market. For many years, stablecoin cryptocurrencies have been used for payments, principal value storage, B2B transactions and more. However, traditional stablecoins have always lacked the ability to generate yield. These assets are fixed at a certain rate (e.g., $1) and, due to inflation, they don’t protect against your funds’ value erosion. 

 have started to gain traction over the past several years. These "new generation" stablecoins, unlike their traditional counterparts, not only provide rate stability but also generate yields, growing your investment over time. One of the leading assets among yield-bearing stablecoins is US Dollar Yield (USDY), issued by Ondo USDY LLC, part of 

Backed by low-risk traditional finance (TradFi) reserves, USDY generates yields and is a fully composable asset that can be used throughout the DeFi ecosystems of multiple blockchains. The reserves and issuance of the stablecoin are also subject to high regulatory controls. In the world of yield-bearing stablecoins, USDY is among the top choices in terms of popularity, regulation and security.

What is the Ondo US Dollar Yield (USDY) Token?

 (USDY) is a yield-bearing stablecoin offered by Ondo USDY LLC, part of the Ondo Finance DeFi solutions provider. 

USDY’s value tracks that of the US dollar, and it’s backed by Treasury bills and demand deposit reserves. The coin issuer’s parent company, Ondo Finance, specializes in institutional-grade crypto solutions. Ondo aims to make on-chain institutional-grade finance tools and infrastructure accessible to anyone.

USDY was launched in August 2023. As of April 2025, the stablecoin has become available on 

 — a level of multichain coverage that few other stablecoins can match.

While USDY’s price tracks the US dollar’s, its rate is typically somewhat higher than $1 because yields earned by each unit of the stablecoin are added to it, increasing its nominal value.

 (RWAs), primarily Treasury bills, although some portion of the reserves may also be represented by bank demand deposits. Both of these financial asset types are considered cash equivalents.

To ensure the Ondo ecosystem's security, Ondo backs each $100 equivalent of USDY with reserves worth $104, maintaining a 4% overcollateralization rate at all times.

Ondo Finance takes the transparency of USDY seriously. The company has established a bankruptcy-remote mechanism, with a separate corporate entity controlling the issuance and oversight of the stablecoin in various ways, including a board of directors with an independent director, and segregation of assets and reporting from Ondo.

USDY is a fully composable asset that can be used in the DeFi ecosystems of its host blockchains for various purposes, such as collateral, 

USDY provides several significant benefits for its holders. First, it allows eligible individual and institutional investors to earn dollar-denominated yield. This is in contrast to traditional stablecoins, which provide no yield opportunities at all. While other yield-bearing stablecoins also generate returns for holders, some of these pay the yields in volatile cryptocurrencies, rather than high-quality assets.

Thanks to its dollar peg, USDY offers both yield and relative stability. Additionally, it’s fully composable, creating opportunities for use across various DeFi protocols. USDY is available on seven blockchains, providing access to more DeFi opportunities than most yield-bearing stablecoins.

The coin may also be used for passive holding, growing in value over time as yields accrue. In this capacity, USDY represents a good low-risk, on-chain investment opportunity.

Finally, USDY’s overcollateralization and backing by high-quality TradFi assets, Treasury bills and demand deposits make it one of the most secure yield-bearing stablecoins on the market.

How does Ondo US Dollar Yield (USDY) work?

Individuals and institutional entities need to undergo an onboarding process to acquire USDY, during which they submit relevant identity, legal and tax documents. Ondo diligently applies 

 (AML) checks in order to adhere to US securities laws, the Investment Company Act of 1940 and other relevant regulations.

US and UK residents cannot apply to buy USDY, although you may be eligible if you’re a US or UK citizen and reside abroad.

If your application is approved, you can be issued USDY 40 to 50 days after your initial deposit date, although you’ll start earning yield from the first day of your investment. The minimum amount for investment or redemption is $500. You can buy USDY from Ondo using the 

 stablecoin. US dollar wire transfers are also supported for amounts over $100,000.

Redemptions are only transferred in US dollars to bank accounts outside the US. You can redeem your USDY investment at any time, and the typical timeline to receive your funds is about 2–3 business days from the date of your request.

USDY accrues yield daily. The stablecoin’s yields are structured not to incur any US federal tax obligations. Ondo doesn’t charge any performance or management fees for USDY yields. However, the company earns income from a portion of yields generated by the underlying assets backing USDY.

As noted earlier, USDY’s yields accrue to each unit of the token. Therefore, the value of one USDY is usually above $1. For instance, the average value of USDY as of the time of this writing (Apr 30, 2025) is $1.11.

For investors who prefer a fixed $1 rate for the stablecoin, Ondo offers the rebasing version, called rUSDY. Yields for rUSDY are paid to your wallet in the form of additional tokens by increasing the supply of the crypto, while the principal remains at (or very close to) $1. This is known as rebasing. USDY and rUSDY are freely convertible between each other.

The rebased version of the coin might be useful to those who need to ensure rate stability (for example, for B2B payments of agreed-upon contractual amounts) while also earning yields from their investments.

 as a swap pair with the USDT stablecoin.

USDY boasts numerous benefits for investors — low-risk yields from high-quality traditional assets, wide multichain coverage, regulatory compliance, transparency, composability and rate stability. The combination of all these benefits is quite rare in the crypto market, and the investor community is definitely taking note: USDY is already the third-highest-ranked yield-bearing stablecoin by market cap as of late April 2025. 

Since the yield-bearing stablecoin niche is expanding, the advantages of the USDY are likely to attract further interest, both among the institutional crowd and with individuals keen to access high-quality, institutional-grade crypto products.

Intermediate

Ondo US Dollar Yield, USDY.png

What is Ondo US Dollar Yield (USDY) and how does it work?

Discover the 7 top Sui meme coins in 2025, from MIU to HIPPO, as they gain traction with fast growth, strong communities, and unique use cases.

 blockchains, have continued to rally as investors make bold moves with renewed risk appetites. As a 

 blockchain, Sui has continued to attract crypto enthusiasts — especially meme coin lovers, who appreciate the platform's speed and affordability.

Recent surges in trading volumes and market caps of SUI meme coins — such as MIU, LOFI and BLUB — highlight growing investor interest. For instance, BLUB experienced an 88% increase in just 24 hours from Apr 22–23, 2025, contributing to the broader rally of SUI as its price surged over 63% in April 2025.

These coins often incorporate unique themes and philanthropic efforts, such as HIPPO's wildlife conservation donations, that foster strong community support.

Let's look at the top Sui meme coins making waves in the crypto market.

​Sui-based meme coins are rapidly gaining traction due to a combination of technological advantages and vibrant community engagement. The 

 parallel transaction execution and unique gas pricing mechanism enable ultrafast transaction speeds and minimal fees. This makes Sui an ideal platform for the high-volume, speculative trading that meme coins often entail. Sui’s scalability and secure Move programming language attract developers seeking efficient and safe environments for launching their new tokens.​

 (DeFi) further supports meme coin growth, providing avenues for increased utility beyond mere speculation. Following are the top ​Sui meme coins based on market cap, as of Apr 30, 2025.

 is currently the leading ​Sui-based “cat meme coin,” with a market cap of $70.6 million. It draws in investors with its fun, energetic branding and community-driven spirit. MIU also features expanded utility beyond its cute cat hype, allowing users to access DeFi and 

 (NFT) opportunities on its platform. It also promotes long-term commitment via its 

 process, as stakers can earn up to 15% APR with 12 months of staking.

The project frequently launches community events and contests, strengthening its dedicated holder base. MIU’s success highlights the growing appetite for meme tokens on scalable blockchains like Sui. Its playful appeal and strong tokenomics have positioned it at the top of the ​Sui meme sector. MIU is a 

 coin: its total supply is 9 trillion tokens, of which 55% are dedicated to a 

, 15% allocated to staking rewards, 15% to ecosystem development, 10% to community and 5% reserved for the team.

MIU continues to ride the wave of growing meme adoption, aiming to become a lasting force within the Sui ecosystem and beyond.

With a market cap of $35.86 million and over 50 million app users, 

 (MEMEFI) is an ambitious Telegram project that blends the world of memes with SocialFi utilities. Unlike typical meme coins that rely solely on hype, MemeFi aims to engage Telegram users with an interactive web3 meme-themed clicker game that offers daily giveaways and incentivizes ad creations for enterprises.

Its native token, MEMEFI, is more than just a mere meme coin, and has use cases for 

You can trade MEMEFI on Bybit’s Spot trading platform (

 is a rising ​Sui meme coin known for its chill "lofi vibes" branding that resonates with a younger, internet-native audience. Beyond its fun appearance, LOFI has demonstrated solid growth by tapping into communities through music, lifestyle and crypto.

The project also ties in eco-conscious initiatives, focusing on providing clean water sources for global communities and addressing the impact of ocean waste and plastic on marine health, giving it a mission-driven angle not typically seen in meme coins. Besides direct donating, minting LOFI Mystic Yetis NFTs also helps contribute to the cause, with 20% of the proceeds going to the LOFI Foundation.

Lofi’s accessible vibe and shrewd marketing strategy continue to attract new supporters, helping LOFI to stand out in the increasingly crowded ​Sui meme scene. 

 (commonly known as HIPPO) is a community favorite in the ​Sui meme world. The HIPPO token mixes humor with philanthropy, donating a portion of its revenues to wildlife conservation initiatives, starting with Thailand’s Khao Kheow Open Zoo that houses Moo Deng, the adorable pygmy hippopotamus that inspired this viral meme coin. This feel-good approach has helped build an extremely loyal community around the HIPPO token.

Sudeng’s dual focus on memes and real-world impact gives it staying power. The project’s growing community engagement ensures that HIPPO remains relevant in a fast-moving crypto space.

You can buy HIPPO as a USDT Perpetual contract on Bybit (

 is making waves in the ​Sui meme coin ecosystem with its aquatic-themed branding and integration of meme culture. Known for its friendly, community-first approach, BLUB frequently hosts giveaways, meme competitions and liquidity incentives to maximize engagement.

The coin’s fun branding and its steady increase in active users have helped BLUB climb the ranks quickly. Its strong online presence and viral meme campaigns have attracted crypto enthusiasts who are looking for the next breakout meme project. As it continues building partnerships and expanding its reach, BLUB demonstrates strong potential to become a staple in the Sui meme scene.

 (TOILET) is a rising meme coin on ​Sui that embraces humor and absurdity in a way that resonates with crypto culture. Its branding focuses on being intentionally ridiculous, tapping into the viral tone of meme coins that don't take themselves too seriously.

The project’s organic, community-driven growth has made it one of the most talked-about newer entrants in the ​Sui meme space. Frequent meme contests, community raids and spontaneous airdrops help fuel engagement. One of its biggest events is the distribution of Toilet Club Alpha Pass NFTs to the top 100 TOILET holders (as indicated by the Apr 21, 2025 screenshot), which gives holders access to all of Toilet Dust's projects and events and the right to vote on Toilet Dust's future development.

Despite its humorous façade, TOILET’s strong holder base and active marketing tactics suggest it may remain relevant as Sui’s meme coin ecosystem continues to expand.

 (FUD), another top project in the ​Sui meme coin category, is built around an adorable pug mascot battling FUD (fear, uncertainty and doubt) in the crypto world. With a humorous tone and clever marketing, FUD has built a vibrant community of holders who embrace both its memes and its mission.

FUD leverages trending memes, contests and airdrop rewards to keep its community marketing fresh and viral, helping it steadily grow in popularity. Its deep integration of ​Sui apps like 

 — as well as its deflationary tokenomics, whereby 20% is dedicated to token burning — makes FUD a strong contender for future growth in the meme space.

Buying ​Sui meme coins on Bybit can be exciting. Nevertheless, it's important to recognize the risks and rewards involved. 

, and their prices can swing wildly and quickly, offering chances for sizeable gains as well as sudden losses.

Always approach these investments with caution, never risking more than you can afford to lose. That said, the fast-growing ​Sui ecosystem and meme culture can create rewarding opportunities for traders who stay informed and manage their risk properly.

Currently, you can buy MEMEFI as a Spot pair and Perpetual contract on Bybit. HIPPO is also available as a Perpetual contract. This gives traders the flexibility to choose the type of exposure they want — simple buying and holding with Spot, or leveraged trading with Perpetual contracts.

Spot trading is the most straightforward way to buy ​Sui meme coins, as you directly purchase the coin and own it outright. On Bybit, the process is simple. After choosing the Spot pair, such as MEMEFI/USDT, select your preferred order type — e.g., 

(you set the price you're willing to pay) — and confirm the trade to make your purchase.

Spot trading is ideal for beginning traders, as well as anyone who prefers a more straightforward, lower-risk approach as compared to 

Buying Sui meme coins as Perpetual contracts

Bybit offers MEMEFI and HIPPO as USDT Perpetual contracts for those seeking more advanced trading options. With Perpetual trading, you don’t own the actual coins; instead, you speculate on their price movement. Key points to understand include the following:

Perpetual contracts can offer significant rewards, but require a strong understanding of 

. Always start with lower leverage and practice solid trading discipline.

Whether you prefer the simplicity of Spot or the strategy of Perps, Bybit provides flexible ways to explore the booming ​Sui meme coin market.

The rapid rise of meme coins on the Sui blockchain highlights the power of community-driven projects when they’re paired with innovative technology. Thanks to Sui’s high-speed transactions, low fees and developer-friendly environment, Sui meme coins like MIU, LOFI and HIPPO have found a perfect ecosystem in which to thrive. Each project brings something unique to the table — whether humor, philanthropy, DeFi innovation or pure meme culture — creating a vibrant and diverse ​Sui meme coin landscape.

Beginner

top sui meme coins.png

7 top Sui meme coins to pay attention to in 2025

Mastercard has partnered with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. 

Daily top performer — Drift Protocol (DRIFT)

The S&P 500 rose 0.58% for a sixth straight gain as markets await key inflation and GDP data, alongside earnings from Meta and Microsoft. Gold fell 0.60% to $3,323 as a stronger USD and improved risk appetite limited safe-haven demand. Prices remained range-bound, with key levels at $3,260 support and $3,400 resistance. The Coindesk Indices, which tracks the broader crypto market, rose 0.51%, with Bitcoin and Ether up 0.55% and 1.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DRIFT, which surged 28.7% following the introduction of Amplify, Drift's tool for simplified leverage that boosts yields with increased risk.

Drift Protocol (DRIFT), founded in 2021, is a decentralized exchange (DEX) on Solana offering spot trading, perpetuals, and market-making tools. Drift v2 builds on this by improving trading efficiency, security, and user-centric features, incorporating community feedback to enhance the platform. 

 by Drift automates leveraging strategies for higher yields by recursively borrowing against yield-generating assets. It simplifies the process, making leverage accessible with one click. However, risks such as liquidation, changing interest rates, and oracle failures exist. Amplify is designed for users with JLP or SOL LSTs seeking to boost yields with minimal complexity but comes with increased risk.

Check out the latest prices, charts, and data of 

 with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. The company aims to make it easier for both merchants and consumers to use stablecoins, promoting blockchain technology's mainstream adoption. Additionally, Mastercard has launched a crypto payments card with MetaMask, enabling self-custodied fund transactions with fast processing speeds. Stablecoin market growth is expected to reach $3.7 trillion by 2030.

Yesterday, Bitcoin spot ETFs saw $43.9 million in net outflows, all from non-GBTC funds, while GBTC recorded zero flows.

, a Layer-1 blockchain focused on AI agents and user-owned IP, is offering a limited-time free ticket to its Summit Series for the next 18 hours. Users can also join the Camp Points Program by completing simple tasks to earn points, which may qualify them for a future $CAMP token airdrop. A minimum of 30 points is required to be eligible. Daily check-ins earn bonus points. VPN use may be needed for access.

3.png

Mastercard partners with Circle, Paxos, and Nuvei to enable stablecoin payments for 150 million merchants

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. 

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. A weakening dollar, combined with disappointing equity returns, has created a fertile environment for gold to thrive. With gold priced in dollars, any depreciation in the US currency enhances gold's relative value, attracting both domestic and international investors.

Year-to-date, gold has gained 26%, while the S&P 500 has declined by 11%. This inverse relationship underscores gold's role as a traditional 

 during periods of economic uncertainty and market volatility.

Adding to the bullish momentum, inflationary pressures are remaining persistent, further eroding the purchasing power of fiat currencies and boosting gold's appeal as a hedge against currency devaluation.

Geopolitical uncertainty and tariff risks

Trade policies under U.S. president Trump have reignited fears of global tariff wars. The uncertainty surrounding tariffs has prompted investors to seek refuge in gold, considered the "global currency" during times of economic disruption. Concerns about tariffs on key commodities, including gold itself, have added another layer of complexity to market dynamics.

Potential tariffs on gold could mirror the recent surge in copper prices, as supply constraints and increased demand drive costs higher. Exporters and importers, wary of volatile exchange rates, are increasingly opting to hold gold instead of more vulnerable currencies like the Canadian dollar (CAD), Japanese yen (JPY), euro (EUR), Chinese yuan (CNY) and Mexican peso (MXN).

By serving as a neutral reserve asset, gold provides much-needed stability amid shifting trade patterns and geopolitical tensions. As global commerce adapts to new tariff structures, the demand for gold as a "store of value" is likely to intensify.

Interestingly, the ongoing trade war dynamics suggest that for the first time in decades, gold may be emerging as the 

. As U.S. imports become more expensive due to tariffs, exporting countries earn less revenue and, consequently, reduce their investments in US Treasuries. This dynamic has led to selling pressure on Treasuries, weakening their traditional role as a safe-haven asset — and with Treasuries losing their appeal, investors are increasingly parking their capital in gold, reinforcing its unique position during this period of heightened trade tensions.

From a technical standpoint, gold's rally appears robust. The 

 (MACD) indicator remains positive, signaling that bullish momentum is intact. Notably, the 12-day moving average is above the 26-day moving average, confirming that short-term price action is outpacing longer-term trends.

 (RSI) stands at 60, indicating that while gold is nearing overbought territory, momentum hasn’t yet faded. This technical setup suggests that gold could continue its upward trajectory in the near term, especially if macroeconomic and geopolitical factors remain supportive.

The next upside technical target is pegged at $3,500, with analysts projecting a potential move toward $4,000 by year end if current momentum holds.

China's role in supporting gold prices cannot be overstated. Amid a deepening economic slowdown and strict capital controls, Chinese investors are increasingly turning to gold to preserve their wealth. With over 1.4 billion citizens seeking alternatives to a weakening yuan, demand for gold within China has surged.

This trend is reflective of a broader shift in emerging markets, whereby gold is viewed not just as an investment but as a critical safeguard against economic instability and currency depreciation. Intensifying Chinese demand provides an additional tailwind to global gold prices.

While gold commands the spotlight, silver presents an intriguing complementary opportunity. Historically correlated with gold, silver remains significantly below its ATH of $50, which was set in 2011. Given the momentum in precious metals, silver's relative undervaluation offers considerable upside potential for investors seeking diversification.

With industrial demand also supporting silver prices, silver could benefit from both safe-haven inflows and economic recovery scenarios, making it a compelling addition to a diversified precious metals portfolio.

In conclusion, gold's impressive surge to record highs is being driven by a combination of macroeconomic headwinds, geopolitical uncertainty and strong technical indicators. Trade policy risks, the weakening dollar and growing demand from China reinforce gold's role as a premier safe-haven asset.

Because technical momentum remains positive and investor sentiment strong, gold appears well positioned to continue its ascent toward the $3,500 mark by year end. Investors seeking to hedge against economic instability and currency volatility will likely find gold — and potentially silver — to be attractive additions to their portfolios in 2025.

Advanced

Fx Street report.png

Bybit x FxStreet Report: Gold could reach US$4,000 per ounce by 2025

Strategies

Trading

Wyckoff Method helps you make better investment decisions via the study of supply and demand patterns. While the rules and principles help you to track the market movement.

 that helps traders make decisive investment decisions in the traditional financial markets. By studying the supply and demand patterns, traders can assess the market index to calculate the market performance.

To properly utilize this method, Wyckoff proposes to assess the methodology through chart reading (point and figure chart) accompanied by several principles, techniques, and rules to track the market movements.

In trading, the Wyckoff method refers to a process used to focus on the accumulation phase of a price chart. This method can help investors and traders find the footprint of larger players and smart money in the range where they’ve left obvious patterns behind. 

developed the Wyckoff method in the 1930s. He spent most of his life teaching, and his thoughts about the market have had a significant effect on modern technical analysis. Many traders through the years have been inspired by his method, becoming successful themselves in the industry. Today, investors consider the Wyckoff method a reliable trading method for reading prices that works well alongside Dow Theory and 

Wyckoff believed that the big players and smart money behind these ranges build orders before making their price moves. His method aims to read the footprint of smart money and find where the price is heading by using the fractal of the price range.

Before making a trading decision based on the Wyckoff method, investors need adequate knowledge about the Wyckoff Laws. The Wyckoff accumulation method is based on three fundamental laws:

Let’s take a look at the basics of the Wyckoff Laws:

This is the first and most important of Wyckoff’s laws. According to it, price moves with changes in supply and demand. We can demonstrate the first law with three equations:

Therefore, according to the Wyckoff law, traders will see a bullish movement as soon as demand exceeds supply. On the other hand, prices will move down when the supply is higher than the demand. 

However, there is no way to determine the exact supply and demand from a price chart. Traders often compare price action with volume to correlate supply and demand to price.

Wyckoff’s second law states that the difference between supply and demand is not random. Rather, it has an underlying logic. 

For his second law, Wyckoff uses two terms: accumulation and distribution. 

Accumulation comes after a period of preparation, especially economic events. In this phase, accumulation (cause) leads to an uptrend (effect). Similarly, in the distribution phase (cause), price decreases, resulting in a downtrend (effect).

According to Wyckoff’s third law, price moves due to an effort, represented by trading volume.

When the price action trading volume shows the same sentiment, the current trend has a greater chance of continuing. On the other hand, if the volume doesn’t support the 

, it will create a divergence in the price, leading to a stop or change in direction. 

For example, let’s use the case of Bitcoin’s price moving higher and consolidating. During the consolidation period, volume is higher, but the price isn’t reaching a new high. Therefore, this is a sign that the volume and price are not showing the same sentiment. In this case, there is a greater possibility of reversal to the current momentum.

According to Wyckoff, traders can anticipate price movement based on a detailed analysis of supply and demand that comes with studying price action and volume and with time. 

Wyckoff observes the activity of successful traders, decoding their activity with what he refers to as vertical (bar) and figure (point and figure) charts. This method includes looking at how big players prepare and execute the 

Wyckoff accumulation— markup and markdown phase.

According to the above image, investors should prepare for taking a buy position at the markup phase and sell positions at the markdown phase.

In the Wyckoff price cycle, the market direction is set according to the change in supply and demand. This is the core of Wyckoff’s method of trading and investing. Prices will move up once demand exceeds supply. Similarly, prices will move down as soon as supply exceeds demand. 

Traders need to study the changing supply and demand, comparing them to price and volume over time. Patience and practice are required to master the art of accurately determining supply and demand from a chart.

Price action is a process used to anticipate the price movement of any trading instrument by observing its price. It is an effective way to anticipate price movement, which also works well in the cryptocurrency market. 

Most traders use candlesticks, trend lines, support resistance, and order flow, among other price action elements. The basic idea is that once a price breaks above any resistance level, it has a higher possibility of continuing its bullish pressure. 

In the Wyckoff Cycle, the accumulation phase represents a range, and any breakout from the range with an appropriate price action may indicate strong bullish movement.

Price action alone is not enough to determine possible price movement from the Wyckoff accumulation area. Bullish movement from the accumulation area — or bearish movement from the distribution area — is valid once the volume has reached a certain level. 

Traders are advised to find an appropriate price action with a substantial volume to consider the price movement as promising.

Timing is the most important element in the Wyckoff Cycle. The market cycle moves continuously from markup to markdown, and the perfect buying and selling position is valid only once the timing is right. 

When the price remains within the trading range, traders can move to the lower time frame to perfect the trading entry. Here the ultimate target is to open a buy position once the accumulation is over and a sell position once the distribution is over.

Wyckoff proposed the “Composite Man” concept to understand the price movement of an individual trading instrument with the overall market context. 

The composite man is a hypothetical person who has the capacity to move the price. He sits behind the scene and runs the game. Any manipulation of the price eliminates other traders’ hopes from the market. However, traders who know the composite man’s sentiment can survive the game and remain profitable. 

In the cryptocurrency market, the composite man is also known as the — crypto whale.

Let’s see how to play the market game as the composite man plays it.

The composite man is brilliant. He knows how to trap retail traders in his campaign. He starts the game by attracting people to buy crypto assets, which he has already accumulated by making many transactions within a range. 

Wyckoff believed that only smart traders could catch the composite man’s trap and find the opportunity to make profits from the beginning phase of a movement.

Accumulation is the first phase of the Wyckoff price cycle. In this stage, institutional traders build orders and slowly gain powers that take the price higher. 

The composite man aims to accumulate orders before starting his final move. Although the accumulation phase shows buying pressure, the price remains flat. Wyckoff suggests that traders closely monitor this phase and find a suitable buying position, using the price action and volume.

Wyckoff used daily high, low, and closing prices to create a series of price charts. The main objective is to determine where the current market trend is heading. In this method, the trend is an important element, as it shows where the broad market is moving. 

Whatever the composite man does to trap retail traders, he follows the market trend. Therefore, Wyckoff suggests that smart traders need to follow the footsteps of the composite man toward the broader market trend. 

There are three possible trends: up, down, or flat. Furthermore, they exist in three different time frames: short-, medium- and long-term. The uptrend forms when the price makes a series of higher highs. The downtrend forms similarly, with multiple lower lows.

Once the accumulation phase is over, the price will move up with an increase in demand. However, most retail traders will jump into this buy party once the markup is over. But after the markup phase, there is no upside potential. 

The sell-off stage appears after the markup that accumulates sales orders from a consolidation. According to Wyckoff, smart investors should avoid buying trades from the sell-off stage or close their buy positions before the sell-off starts.

In the accumulation schematic, the trading range represents the space between the SC low and the AR high. While secondary test usually happens when the market drops near the selling climax region to retest and confirm if the intense selling pressure is prolonged or ended.

Generally, during the accumulation phase, the price remains sidelined for range-bound trading after a strong downtrend. Larger players build positions and eliminate retail traders from the market by creating hopes of a further drop in the price. Once smaller fishes are confident about the price drop, bigger players aim to move higher after filling their positions.

According to Wyckoff, there are six stages in the accumulation phase. These stages include:

 The preliminary support appears after a long bearish trend. Traders may experience a high volume and spread widening. It is the first indication that the selling pressure will end, and buyers may control the price.

In the second step, the price begins to sell off, violating PS. This is a panic selling phase. After a while, the price may reverse after exhaustion, when the spread might extend to an extreme level. In the end, the price may close far from the low with a long-wicked candle.

 This part can be disastrous for sellers. After the violent selling pressure of the SC, the price reverses and recovers all the movement shown toward the sellers’ direction. This phase indicates that short sellers are covering their positions. The high of this movement determines the high of the range, which is a significant barrier for most buyers.

 After the AR, the price will go lower again but controlled. In this movement, sellers’ volumes should be higher, and there may be multiple secondaries in the price.

 In this phase, the price will perform a hard test of recent lows that will mislead traders. After watching the spring, average traders will consider the market trend bearish and start selling trades. However, the price should show a swing failure pattern and move up after a shakeout. This phase is prevalent with altcoins that have bottomed out for a considerable time.

 The last stage of the accumulation cycle. The price should break out from the range with an impulsive bullish pressure and confirm the upcoming bullish trend.

Once the Wyckoff accumulation is over, the price will move sharply higher as demand will exceed support. Buyers will experience an impulsive bullish pressure in which most money is generated from a buying position.

In the distribution phase, the price remains sidelined after a strong uptrend. Larger players will now liquidate their positions, which may take the price lower after further steps. 

There are four stages in the Wyckoff distribution phase. We will discuss them in this section.

 The preliminary supply appears after a long bullish trend during which the high volume and spread increase. This is the first indication that the buying pressure will end, and buyers may control the price.

In the second step, the price starts to move within a range. In this phase, the volume and spread will be normal.

 After the CZ, the price will move up again, expanding in the spread and increasing volume. Thus, traders may think that the price will continue its bullish pressure. However, it will reverse immediately after breaking near-term highs.

 This is the last stage of the distribution schematic. The price should break below the range and restart its original movement.

This section will look at the practical use of the Wyckoff method in the cryptocurrency market, including how traders can make trades.

First, find the 200 SMA as flat after a long bearish pressure for three to six months. Later on, mark the high and low of the range. To make a buy trade, find the price to reach the low of the range and subsequently get rejected.

Similarly, make a sell trade as soon as the price rejects the range high. Here the price may break beyond the range at any time, so be sure to use a tight 

In the aggressive entry, traders should carefully read the price and find three key points of the accumulation phase. Once the spring is over, the price is ready to move. However, investors should focus on fundamental events besides the price action and volume to consider the bullish possibility is valid.

The above image represents a breakout happening, in this case, for Bitcoin. The price moves aggressively higher after the spring and holds its position before giving a 50% gain.

With the conservative approach, traders join the bullish trend after a strong breakout. When the price moves up from the spring, it won’t go straight to the target level. Rather, it will create some swings where traders can make trades with minimal risk.

The above image shows the price creating an event level where the resistance becomes support. After that, the price rejects the support with a bullish candle that provides a decent profit.

After accumulation, the price will move up. However, it will accumulate orders again — known as reaccumulation — if it wants to move more. 

How to Apply the Wyckoff Accumulation Theory to Trade Crypto

Compete for 2,500 USDT USDT Every Week

How to Apply the Wyckoff Accumulation Theory to Trade Crypto

Grab Up to 5,000 USDT in Rewards

Compete for 2,500 USDT USDT Every Week

Grab Up to 5,000 USDT in Rewards