Earlier in July, the cat-themed meme coin defied an ongoing bear market by posting a massive 2,000% weekly increase. Its rise was primarily driven by the token’s connection to the official Robinhood platform, which recently introduced its own blockchain, as well as support from Binance.
However, the uptrend has come to an abrupt end, and over the past seven days, the CASHCAT index has collapsed by more than 65%, raising questions about whether the hype is over.
Traders’ experience
Kashkat, which exploded To $0.22 on July 12, it is now worth around $0.05 (per CoinGecko), and some market watchers have begun to speculate that it will hardly be able to regain its previous highs, but will instead collapse to a lower level.
Meanwhile, smart traders took advantage of the meme coin’s decline. According to analytics platform Lookonchain, one individual started shortening CASHCAT 2 days ago and now has over $500,000 in unrealized profits. Naturally, this led to allegations of inside information that the rest of the market participants were not aware of.
However, not everyone has benefited from the currency’s wild run. One trader to make A paper loss of $460,000 due to the collapse of cash registers, while another loss Sold prematurely, turning a $69 position into $711. This is already 10x, but Lookonchain pointed out that if they had waited a little longer, they could have retired.
Is the game really over?
Some X users were puzzled by CASHCAT’s sudden move south, trying to figure out why. delicate he asked Their 125,000 followers for an explanation, and most of the responses were not entirely satisfactory to the meme’s currency.
Several people who commented on the post described the cat-themed token as a scam, claiming that “anyone who bought at such high valuations has been scammed.”
It is true that CASHCAT is similar to many other meme currencies whose explosive rises were based entirely on hype and speculation rather than fundamentals or true utility. Examples include Siren (SIREN) and MemeCore (M). The former was at the forefront of gains in June, however It crashed by 96% in one day after selling out its console for nearly 94% of the supply.
A comeback is not out of the question, and a renewed influx of speculative traders could help lift CASHCAT and similar tokens. However, one should remain aware of the extreme risks and volatility, do due diligence before entering the ecosystem, and only invest what they can afford to lose.
this post CASHCAT Drops 65% in a Week: Another Meme Coin Doom or New Pump Load? appeared first on CryptoPotato.
