Memecoins
Analysis of the DADDY memecoin boom by Andrew Tate
The memecoin DAD, crypto promoted by Andrew Taterecently recorded an impressive 40% increase in its market value.
This feat led DADDY’s market capitalization to reach $100 million, raising questions about the sustainability and nature of its rapid success in the cryptocurrency market.
But what is DADDY’s volatility contraction pattern? Let’s see the implications of this phenomenon for the future of memecoins and their role in the global crypto ecosystem.
Andrew Tate’s DADDY’s Rapid Rise in the Crypto-Memecoin Landscape
As expected, the DADDY memecoin, created and promoted by Andrew Tate, has seen a notable increase of 40% in the last 24 hours. This is despite the drop in the value of Bitcoin (BTC) below $60,000.
This increase led DADDY’s market capitalization to momentarily reach $100 millionpositioning itself among the best yields of the day according to the data from CoinGecko.
DADDY’s recent momentum was sparked by Andrew Tate’s video in which he invited memecoin holders to enroll in his university, The real world.
Tate indicated a 72-hour window for DADDY accumulation, anticipating a major announcement intended to “reform the cryptocurrency.” Tate said the following:
“You will understand that we are about to build an environment based on honor, hard work and diligence, rather than being first, luck, the draw or anonymous and devious individuals.”
Exclusive benefits for The Real World students
Additionally, The Real World announced that Tate would reveal a exclusive advantage for his students, writing the following:
“What is an unfair advantage? DADDY, up 40% in the last 24 hours while the rest of the market is down, is a perfect example.”
Technically, DADDY shows a volatility contraction model (VCP). This is a bullish signal characterized by progressively lower volatility and tighter price consolidations, often precursors to a breakout.
Current resistance for this pattern is at $0.1673, in line with the 0.618 Fibonacci retracement level of the downward move from $0.2878 high to $0.0712 low.
If the price breaks above this threshold, it could potentially increase by 175% to reach $0.4208, corresponding to the 1.272 Fibonacci retracement level.
On the contrary, if it fails to break above this level, the price could stabilize around the support of 0.0990 dollars.
However, investors should be aware of the associated risks with celebrity-promoted trading memecoins, such as the frequent cases of pump and dump, where traders can incur significant losses.
Additionally, it is assumed that the major holders of DADDY are “insiders.” If they decided to sell, the value of the coin could drop drastically.
Social Media and the Andrew Tate Brand: The Causes of Memecoin Success
As mentioned, the DADDY crypto token has reached a market cap of over $120 million, highlighting an increase of over 35% in a single day and 80% in the last week.
This result marks a important moment for the token, which benefits from Tate’s huge social media following and recognizable brand.
Launched just a few weeks ago, DADDY has quickly captured the attention of investors, accumulating a community of 47,600 holders.
This rapid increase in value allowed its early investors to make substantial returns. Among them, one investor turned a $2,000 investment into $1.74 million.
DADDY’s success is largely due to Andrew Tate, who was able to leverage his social media audience to promote the token.
The combination of a aggressive marketing strategy and Tate’s personal brand appeal has led DADDY to become one of the most talked about tokens in the cryptocurrency landscape.