GM. This is Milk Road Degen, the crypto newsletter that treats stop losses like seat belts, you hope you don’t need ‘em, but thank god they’re there.
Here’s what we got for you today:
- ✍️ My picks for a low-cap rebound
- 🎙️ Milk Road Degen Podcast: Crypto Market Update, REKT’s Explosive Growth & OSF’s Altcoin to Watch
- 🍪 NFT market just shed $1.2B
Swords of Blood is a fast-paced role-playing game where players battle, progress, and earn rewards. Play the game now.
Prices as of 8:00 AM ET.
MY PICKS FOR A LOW-CAP REBOUND (P1) 💰
Well degen, it’s been quite a week.
I woke up Saturday morning with the idea that we would capitalize on Alt Season - and to be honest, I still think we’re due for a nice one here.
But when you see pullbacks like this week’s -13% $ETH candle, and you read tweets like this, it's natural to be fearful, especially when holding high-risk assets.
And that’s why this 2-part series on altcoins is perfect timing:
- We have entries to these potential runners
- We’re setting very tight stop losses for each play
- We’re eyeing a nice recovery on these tokens that have bled way too much, even if it's short-term.
After all, the recovery has already begun! Just look at $LINK, which I called in Monday’s newsletter - the thesis worked out perfectly, as we got our entry just below $24 last night.
How to set perps in HyperLiquid
I’ve had this request many times from the community, so here’s a very quick tutorial on how to actually set up one of these trades.
Warning: This is very very high risk. Yo u can easily get liquidated and lose tons of money doing this, and even I feel like I’m still “practicing” with perps. If you DO want to dabble, please use very small amounts.
You can buy these tokens in spot as well. Perps is just for the freaks.
Let’s get to our picks!
$PENGU - The inevitable rally
I’ve covered this for months, even dropping my actual trading strategy for this one in the Degen PRO Discord channel. So those who know, know.
The Pudgy Penguins token ripped nearly 10x off its April 2025 lows, delivering one of the cleanest risk/reward setups in the entire market. Now, with Abstract’s TGE rumored for Q4 and memes on Abstract catching fire, $PENGU looks ready to break out of its month-long chop.
The bull case
- Pudgy Party, their mobile game, drops September 2.
- The brand keeps expanding - now Top 10 most-viewed GIFs.
- Big $PENGU holders get “special status” in Abstract and earn high XP.
Are you still reading these bullets? My god man, it's Pudgy Penguins. How could you possibly fade them?
How the chart looks:
- Two classic bullish setups are on the chart: a Cup & Handle and a Falling Wedge.
- $PENGU came within inches of ATH during July’s monster rally but has been chopping sideways ever since.
- To me, that looks less like weakness and more like coiling for another leg up… unless it rugs straight to hell (I’m betting on the former).
How I’m playing it:
- Entry: $0.028-$0.03
- Take profit zones: $0.036 / $0.04 / $0.045
- Stop loss: below $0.028
IS THIS THE NEXT 100X GEM IN GAMEFI?
GameFi has been quiet…
But with the bull market heating up, this sector is primed for a comeback.
The project to watch? Swords of Blood by Hit Box Games.
It’s a fast-paced role-playing game where players battle, progress, and rack up rewards:
- 50,000+ total users
- 8,000 daily active users
- 41% 7-day retention rate
And here’s the kicker: the game goes live before the token ($HBOX) launches.
A proven game + smart tokenomics = the perfect setup for liftoff.
MY PICKS FOR A LOW-CAP REBOUND (P2) 💰
$VIRTUALS - Complete the trilogy
I banked hard on Virtuals during their first wave last fall. You didn’t know me then, but trust - I was cooking in the trenches. One of my biggest Ws of the cycle. I was there the day they launched.
I faded the second act, Genesis, and only caught the tail end for a 2-3x (should’ve been way more).
Now? These guys are setting up for Act III. Their low caps have been some of the best performers lately, and momentum feels like it’s coming back with an updated system.
The bull case
- Genesis just got revamped into a tiered system: projects get “bumped” based on pledge support + they add liquidity to new launches.
- Jesse from Base is dropping little emoji nods in the comments (still no Coinbase listing yet, but Perps are live).
- It’s the #1 smart money holding on Base. People don’t sell this token - they’re bagholding for a run back to ATH, which would be a clean 4x.
A rally is possible, sir.
How the chart looks:
- Bleeding since $IRIS launched, which marked the local top (June 2025).
- Rally attempt in late July got nuked by “Nuclear War”.
- Back to bleeding with the market, but if/when conditions flip, it could finally crack that 8-month downtrend.
How I’m playing it:
- Entry: $1.05 to $1.15
- Take profit zones: $1.6 / $1.9 / $2.3
- Stop loss: $0.95 or below
I would wait for some momentum before buying Virtuals. No one will want to play their new system until good market conditions return.
$VVV - The new yield
This is the dark horse of the bunch - and the reversal is already underway. Just last Monday (Aug 11), I tagged Venice as a “Token That Could Pop”. Since then? Up 33%.
Now comes the real catalyst: their new token $DIEM launches today. It tokenizes the compute power staked through $VVV. If $DIEM comes out hot, it could spark a rush to buy and stake $VVV. (If not… well, you know the bear case.)
The bull case
- A two-token ecosystem could trigger a gold rush on $VVV. Staked tokens are locked for 14 days.
- Base whale 0xWives just dropped $250k into $VVV - likely front-running the $DIEM launch.
How the chart looks:
- Clean breakout to $4 after months of downtrend.
- Easily one of the week’s top performers considering the wider-market pullback.
- With market tailwinds, this could run to $5+ in a hurry.
How I’m playing it:
- Entry: $3.4-$3.8 (ranging here, as it could dip)
- Take profit zones: $4.5 / $5.0 / $6.0
- Stop loss: $3 or less (basically erasing its prior move)
This thing could also just dump once the new token comes out in a “sell the news” event. So be weary!
Wrapping up
This market is shaky, no doubt about it.
$ETH just reminded us that nothing goes up in a straight line. But that’s also why we plan our trades ahead of time: clear entries, exits, and stops that protect us if things nuke, and let us ride if they rip.
My plan is simple: I’ll keep trying to catch these setups with tight risk, take profits quickly, and rotate into the next opportunity. Alt Season rewards the patient; but it also punishes the reckless.
Stay nimble, degen. The fun is only just getting started.
WE’RE SHAKING THINGS UP 🔥
Enter The Milk Road Degen Podcast, a twice-weekly sit-down with the biggest brains in crypto; top traders, killer founders, and prominent voices who see the market differently.
We’re going to get inside their heads, find out what’s on their radar, where they think the puck is going, and how they separate the signal from the noise.
Make sure you’re subscribed to the Milk Road Degen YouTube so you never miss a drop!
In today’s ep? We sit down with OSF. You won’t wanna miss this one. 👇️
YouTube | Spotify | Apple Podcasts
BITE-SIZED COOKIES FOR THE ROAD 🍪
Dogecoin whales are loading up as short-term holders bail. They’ve scooped over 200M DOGE from panic sellers, turning weakness into a classic accumulation setup.
Layer Brett just shattered $700K in presale hype. Born from the Pepe meme, it’s now pitching itself as a fast, low-fee Ethereum L2 with staking, a 10B cap, and real community fire.
NFT market just shed $1.2B as $ETH cools. A 9% dip in Ether triggered sharp drops in top collections like CryptoPunks and BAYC, while Pudgy Penguins clawed their way to second place.
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