Last night, the cryptocurrency market experienced a "black swan" event, with the MEME sector's star coin ACT plummeting like an out-of-control roller coaster, crashing 60% in a short period. According to Coinglass data, over $7 million in long positions for ACT were liquidated, and panic spread instantly, causing multiple MEME coins like DFU and DEX to also fall sharply.
Binance responded by stating that four users briefly sold over $1 million worth of ACT tokens, which directly triggered a price avalanche, leading some users to close their futures contracts, further dragging down other tokens.
This crash was by no means accidental; it exposed the inherent risks of the MEME sector. MEME coins themselves lack practical application support, with their value relying more on community enthusiasm and social media dissemination, much like a castle built on sand. Once market sentiment shifts or large holders concentrate their sell-off, prices can collapse like a house of cards. Additionally, the low entry barriers for projects in this sector lead to a mix of good and bad, rife with risks of running away and fraud, making it easy for investors to lose everything.
From the perspective of the broader market environment, capital inflow into the cryptocurrency market has dropped to a two-year low, and the fear and greed index is in the "fear" zone. Against this backdrop, it is difficult for the MEME sector to secure sustained funding.
However, the MEME sector has always been known for its rapid fluctuations. Historically, MEME coins often rebound quickly after a sharp decline, as PEPE once increased over 100 times in a week. Given the current market situation, I predict that ACT will likely face a rebound from its over-sold status, but due to the overall lack of new funds entering the market and high regulatory risks, the extent of the rebound may be limited. For investors, while the MEME sector is tempting, risks are ever-present, so it is essential to stay alert and proceed with caution.
Although I may miss such a crash, I will definitely seize the opportunity for a surge!
You have no information insert, but I do.
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