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In the past, buying after a token was listed on Binance and seeing prices rise was the norm, but now retail investors are more astute; being listed on Binance seems like the final stop, reaching a peak upon launch. Many have realized that if buying right at the opening doesn't yield profits, wouldn't shorting be a better bet? Thus, many tokens show a tendency to free-fall after listing; even if they rise, it doesn't last long, and as tokens continue to decline, they enter a trash time, with a potential crash before delisting being their final fate. The current play may also be different; an announcement of delisting may trigger a rise because everyone knows it's going to drop and shorts are opened, but perhaps as a last-ditch effort before the death sentence, it could be a new play. In short, the thoughts of the operators are hard to guess!
In the ever-changing landscape of cryptocurrency, the price surges of MEME tokens are essentially the result of capital seeking profit resonating with market sentiment. When this speculative frenzy ends, the costs of the burst bubble will ultimately be borne by someone. The sudden rise of #MEMEFI raises the question: is it a revolutionary comeback or a carefully designed trap by the operators?
I. Analyzing MemeFi: Not just a meme token.
$MEMEFI is not just an ordinary meme token. It originally started as a simple 'click-to-earn' game on Telegram, but as it developed, it gradually built an ecosystem encompassing numerous mini-games and related reward mechanisms. Currently, the project boasts over 55 million users and 10 million on-chain wallets, becoming one of the largest platforms connecting Telegram with the blockchain space.
Recently, there has been quite a stir in the cryptocurrency sector.
In the emerging gaming field, especially within Telegram mini-apps, MemeFi has already established a leading position. However, despite having such a large user base, its development team has been unusually low-key in recent months, adding a degree of uncertainty to the project's future.
MEMEFI/USDT saw a daily increase of up to 300%, with prices rising to 0.005275 USDT and trading volume surging to 34 million. This 'volume-price synchronization' is highly similar to the main forces attracting retail investors to follow suit through large orders. Historically, in the surges of MEME coins, 80% belong to 'bullish traps,' with only 20% having the potential for a 'dark horse comeback.' In just one day, MemeFi's trading volume reached nearly $376 million, placing the token among the top gainers on major crypto price trackers.
II. Analyzing MemeFi's explosive rise: Short squeeze effect as the key driver of price surge.
What force is driving this explosive price rebound? Can this upward trend be sustained?
The primary catalyst for MEMEFI's price surge is closely related to a recent decision by Binance. Binance announced that on August 11, it would delist MemeFi's perpetual contracts. As soon as the news broke, many traders holding short positions rushed to close their positions to avoid greater losses, leading to a sharp increase in spot market buying volume.
This concentrated buying behavior directly led to a significant 'short squeeze' phenomenon, with market buying pressure surging, further pushing up prices.
It is worth noting that similar price fluctuations have also occurred in the past during the delisting of other tokens by Binance, such as ALPACA. In these cases, a decrease in futures trading activity often leads to unexpected price fluctuations in the spot market.
Currently, MEMEFI's trend is more inclined towards the main forces 'replicating the April trend' – using rapid rises to create FOMO (fear of missing out) sentiment, attracting retail investors to take over before unloading. However, the possibility of it becoming a dark horse cannot be completely ruled out; for example, on-chain data showing large tokens being withdrawn from exchanges to cold wallets or significant positive news about the project ecosystem could lead to a market reversal.
III. Is MemeFi a true comeback or just another crypto trap?
Although MEMEFI's recent price jump has attracted a lot of attention, not everyone believes it signifies a true comeback. MEMEFI's current price is still down over 80% from its historical peak. This price increase is likely due to trading pressure rather than genuine recognition of its value by investors; it may be driven by a sudden short squeeze or algorithmic trading.
What makes the market more uneasy is the silence of the MEMEFI development team. The project's official X account has not posted any updates since May, only to suddenly update a post on the day the price surged. This prolonged silence followed by a sudden voice raises doubts about the developers' true investment in the project.
Impact on the crypto market: The ripple effect of MEME coin's surge. The surge of MEME coins has never been an isolated event; like the 'butterfly effect,' it impacts the entire crypto market:
Sector interlinkage effect:
If MEMEFI's upward momentum continues, it might lead to a rise in MEME tokens within the Solana ecosystem, forming a 'MEME season' market. Conversely, if MEMEFI experiences a crash, it could drag down the entire MEME sector, potentially triggering a sell-off of high-risk assets.
Market sentiment barometer:
MEME coins are an extreme reflection of retail sentiment. If MEMEFI continues to surge significantly, it indicates that market risk appetite is extremely high, with funds eager to chase high-volatility assets; conversely, if MEMEFI experiences a crash, it may signal a cooling of market sentiment, with funds starting to shift towards more stable assets.
IV. How to avoid wide fluctuations in risk?
On-chain data is key to insight:
Using Token Sniffer for queries: whether the main wallet has transferred tokens to exchanges (potential unloading signal); observing through Etherscan: whether the number of holding addresses has seen a surge.
Technical Operation Strategy:
For existing holders: set trailing stop losses to lock in profits or reduce losses in a timely manner; for those not yet in: wait for the price to retrace to the 0.004-0.0045 USDT range, and consider entering when trading volume increases moderately, to avoid chasing highs due to FOMO.
Key verification nodes:
If the closing price holds above 0.0055 USDT for the next two trading days, the probability of MEMEFI becoming a dark horse will increase; if a long upper shadow appears with declining trading volume, one should exit immediately – this is a typical signal of main forces unloading their positions.
#MEMEFI's recent surge, is it a “gentle trap” set by the main forces, or a “golden opportunity” for a dark horse comeback? The answer is not hidden in the candlestick chart but is reflected in changes in on-chain data and market sentiment. #MEME
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