- DEGEN crypto topped the week as a leading gainer, soaring 127% after the Coinbase listing.
However, a key resistance factor dampened the hype.
As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen my fair share of memecoins soaring and crashing like rollercoasters at an amusement park. The recent performance of DEGEN has been quite intriguing, to say the least.
After being listed on Coinbase, the cryptocurrency known as DEGEN experienced substantial ups and downs. This sudden addition led to a buying spree, causing an impressive 127% increase in its value just afterwards.
Nevertheless, the initial enthusiasm seems to be waning as DEGEN is currently trading at $0.007389, representing a 7% decline over the past 24 hours.
Based on my personal observations and experiences in the tech industry over the past decade, I find myself questioning whether the initial excitement surrounding this particular technology has truly waned or if there is still a chance for it to make a comeback. As someone who has witnessed numerous trends come and go, I have learned to remain cautiously optimistic about new developments while taking a realistic approach to their potential impact. In this case, I believe that further analysis and careful consideration are necessary before jumping to conclusions about the long-term prospects of this technology. After all, it’s not uncommon for seemingly dormant technologies to find new life in unexpected ways, as they become integrated with other emerging trends or adapt to meet changing market demands.
DEGEN crypto faces retracement
On the secondary layer network of Coinbase, the meme-based cryptocurrency known as DEGEN saw an increase in both its value and trading activity following its inclusion on the exchange’s schedule for listing.
The token jumped 127% from $0.004 to $0.009, with trading volume rising from $8.5M to $89M.
Nevertheless, the surge proved temporary, resulting in a disappointing outcome for numerous investors and stakeholders. Currently, it is estimated that approximately 23,000 addresses hold a combined $3.7 billion worth of DEGEN, which they currently hold at a loss. The fear of missing out (FOMO) continues to drive these investors as they anticipate a price increase in the hope of turning their losses into profits.
Source : IntoTheBlock
If bulls cannot keep the price above $0.007, it’s possible that around $2 billion worth of investments in DEGEN could face liquidation. This is because investors might panic-sell to cover their initial investment cost of $0.006.
Generally speaking, meme-based cryptocurrencies such as DEGEN tend to increase their on-chain transactions, which in turn generates revenue for platforms like Coinbase via transaction fees.
Essentially, when people use DEGEN for trades, it creates earnings for Coinbase. Including tokens like DEGEN in their platform is a smart move because it can lead to increased profits.
Regardless of the initial surge, the bulls couldn’t manage to transform the $0.009 resistance level into a support base, given the persistent market turbulence.
If their efforts had been successful, a spike over $0.009 might have propelled DEGEN back to the price points last seen in mid-June, which it has not approached since then.
Can it achieve that this time?
If these conditions align
It’s worth noting that keeping excitement within a meme coin’s community frequently depends on consistent development work, which offers investors something to look forward to.
For DEGEN, an impressive upsurge in growth has occurred concurrently with a significant rise in its price, peaking at about $0.03 in April. At the same time, the trading volume skyrocketed to an astounding $130 million.
Source : Santiment
As someone who has witnessed numerous ups and downs in my professional journey, I can confidently say that this event marked a significant turning point. It felt like the culmination of all our hard work, but little did we know that it was about to be followed by a dramatic decline over the months. However, just when things seemed bleakest, the recent listing breathed new life into our project and rekindled the excitement that had been lost. This experience has taught me to always stay resilient in the face of adversity and to never underestimate the power of perseverance.
As an analyst, keeping tabs on significant token holders, particularly the ‘whales’ who account for a staggering 63% within this group, is indispensable. These whales collectively hold a substantial 28.08 billion DEGEN tokens, making their actions potentially impactful on market dynamics.
It’s worth noting that despite the listing not acting as a deterrent, significant investors took advantage of the opportunity and deposited vast amounts of DEGEN into exchanges during September, thereby thwarting a potential price decline.
On that particular day of the listing, they made an impressive exit by selling off 388 million tokens.
Source : IntoTheBlock
Initially, they seemed to back their investments, but this backing proved temporary. Later on, they offloaded 15 million units from their holdings onto the marketplaces, which in turn caused a steep drop.
If this trend continues, a potential drop below the present $0.007 support level might trigger substantial sell-offs, potentially liquidating around $2 billion in DEGEN cryptocurrency holdings.
Consequently, it’s crucial to transfer power from big investors to long-term stakeholders. Failing to do so could impede DEGEN‘s ability to experience a bull run, disregarding any listings or development initiatives.
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2024-10-03 23:04