Andrew Tate’s crypto forming a risky pattern
DADDY, a new token associated with Andrew Tate, has retreated in the past few hours. The token was trading at SOL 0.2563 on Friday, down from its all-time high of SOL 0.3625.
DADDY remains a notable cryptocurrency with a market cap of over $150 million. The token has done well since its launch because of the popularity of Andrew Tate, a provocateur with over 9.6 million X (Twitter) followers. It has also done well because of the rising number of users which stands at more than 25,000.
The biggest holder is in control of more than 20 million tokens while the second and third holders are sitting on approximately 17.2 million and 16.1 million, respectively. This may be a red flag given an unfortunate trend of insider activity and market manipulation within the celebrity-backed tokens space.
Is DADDY coin a good investment?
Celebrity tokens, like other meme coins, have made a few lucky people very rich if their timing is right. Traders have been known to make large profits trading meme coins like Pepe and Floki. However, celeb meme coins will most likely have a shorter lifespan than well-established cryptocurrencies like Solana and Ethereum. Just a few weeks ago, singer Davido’s token rose and then imploded within a few days.
This week, Rapper Iggy Azalea’s MOTHER token has crashed by over 50% from its all-time high — and this trend may continue with DADDY.
Therefore, fundamentally, the DADDY token will likely fall over the longer term as most of its holders exit their positions. The same happened with celeb non-fungible tokens (NFTs), many which have become almost worthless.
Still, shorting meme coins like DADDY could be risky because of the hype surrounding them and the possibility of market manipulation.
DADDY token price forecast
On the hourly chart, we see that the DADDY/SOL token peaked at 0.3515 on Thursday, where it formed a double-top chart pattern whose neckline was at 0.1876. In price action analysis, a double top pattern is one of the most bearish signs in the market.
The chart also shows that the token’s volume has crashed hard while its price has moved below the 25-period and 14-period Exponential Moving Averages (EMA).
Therefore, the token’s outlook is bearish, with the initial target being the double-top’s neckline at 0.1876. A break below that level will see it tumble to the next level at 0.1500.
