DADDY, a new token associated with Andrew Tate, has retreated in recent hours. The token was trading at SOL 0.2563 on Friday, below its all-time high of SOL 0.3625.
DADDY remains a notable cryptocurrency with a market capitalization of over $150 million. The token has done well since its launch due to the popularity of Andrew Tate, a provocateur with over 9.6 million x (twitter) followers. It has also done well thanks to the growing number of users, which exceeds 25,000.
The largest holder has control of over 20 million tokens, while the second and third largest holders have approximately 17.2 million and 16.1 million, respectively. This may be a red flag given an unfortunate trend of insider activity and market manipulation within the celebrity-endorsed token space.
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Is DADDY coin a good investment?
Celebrity tokens, like other meme currencies, have made some lucky people very rich if the timing is right. Traders are known to make huge profits by trading meme coins like Pepe and Floki. However, celebrity meme coins will most likely have a shorter lifespan than well-established cryptocurrencies like Solana and ethereum. Just a few weeks ago, singer Davido's record rose and then imploded within a few days.
This week, rapper Iggy Azalea's MADRE token has plummeted by more than 50% from its all-time high, and this trend may continue with DADDY.
Therefore, fundamentally, the DADDY token will likely fall in the long term as the majority of its holders exit their positions. The same thing happened with celebrity non-fungible tokens (nfts), many of which have become almost worthless.
Still, shorting meme coins like DADDY could be risky due to the hype surrounding them and the potential for market manipulation.
DADDY Token Price Forecast
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On the hourly chart, we see that the DADDY/SOL token reached a high of 0.3515 on Thursday, where it formed a double top chart pattern whose neckline was at 0.1876. In price action analysis, a double top pattern is one of the most bearish signs in the market.
The chart also shows that the token's volume has plunged sharply while its price has moved below the 25- and 14-period exponential moving averages (EMA).
Therefore, the outlook for the token is bearish, with the initial target being the double top neckline at 0.1876. A break below that level will see it fall to the next level at 0.1500.
