Andrew Tate’s associated token, DADDY, has experienced a decline in the last few hours, dropping to SOL 0.2563 on Friday from its peak of SOL 0.3625.
Despite the retreat, DADDY remains a significant cryptocurrency with a market cap exceeding $150 million. Its success can be attributed to Andrew Tate’s large Twitter following of over 9.6 million users and a growing user base of more than 25,000 individuals. However, concerning trends in insider activity and market manipulation within the realm of celebrity-backed tokens pose potential risks.
As for the investment potential of DADDY coin, it is worth noting that while meme coins like Pepe and Floki have made some traders wealthy, celebrity meme coins typically have shorter lifespans compared to established cryptocurrencies like Solana and Ethereum. Recent examples of celebrity tokens, such as singer Davido’s token, have experienced rapid rises and falls, indicating the unpredictable nature of these investments. Rapper Iggy Azalea’s MOTHER token, for instance, has recently plunged by over 50% from its all-time high, suggesting a potential downward trajectory for DADDY.
Given these factors, the fundamental outlook for DADDY token suggests a long-term decline as holders exit their positions, similar to the fate of many celebrity non-fungible tokens (NFTs) that have depreciated substantially. However, shorting meme coins like DADDY comes with its own set of risks, including market hype and potential manipulation.
In terms of price forecast, the hourly chart indicates that the DADDY/SOL token reached a peak of 0.3515 on Thursday, forming a double-top chart pattern with a neckline at 0.1876. This pattern, along with a significant drop in trading volume and the token’s price falling below the 25-period and 14-period Exponential Moving Averages (EMA), paints a bearish outlook for the token. The initial target is the double-top’s neckline at 0.1876, with a potential further decline to 0.1500 upon breaking below that level.