The memecoin DADDY, crypto promoted by Andrew Tate, has recently recorded an impressive 40% increase in its market value.
This exploit has led the market cap of DADDY to reach 100 million dollars, raising questions about the sustainability and nature of its rapid success in the cryptocurrency market.
But what is the model of volatility contraction of DADDY? Let’s see the implications of this phenomenon for the future of memecoins and their role in the global crypto ecosystem.
Summary
The rapid rise of DADDY by Andrew Tate in the crypto-memecoin landscape
As anticipated, the memecoin DADDY, created and promoted by Andrew Tate, has seen a notable increase of 40% in the last 24 hours. This despite the drop in the value of Bitcoin (BTC) below 60,000 dollars.
This increase has led the market capitalization of DADDY to momentarily reach 100 million dollars, positioning itself among the best returns of the day according to the data from CoinGecko.
The recent momentum of DADDY was triggered by the release of a video by Andrew Tate in which he invites the holders of the memecoin to enroll in his university, The Real World.
Tate has indicated a 72-hour window for the accumulation of DADDY, anticipating an important announcement destined to “reform the sector of criptovalute.” Tate stated the following:
“You will understand that we are about to build an environment based on honor, hard work, and diligence, rather than on being the first, luck, rug pull, or devious anonymous individuals.”
Exclusive advantages for the students of The Real World
Furthermore, The Real World has announced that Tate will reveal an exclusive advantage for his students, writing the following:
“What is an unfair advantage? DADDY, with a 40% increase in the last 24 hours while the rest of the market is in bear, is the perfect example.” .
Technically, DADDY is showing a volatility contraction pattern (VCP). That is, a bull signal characterized by progressively lower volatility and tighter price consolidations, often precursors to a breakout.
The current resistance of this pattern is at 0.1673 dollars, in line with the Fibonacci retracement level of 0.618, calculated from a high of 0.2878 dollars to a low of 0.0712 dollars.
If the price exceeds this threshold, it could potentially increase by 175% to reach 0.4208 dollars, corresponding to the 1.272 level of the Fibonacci retracement.
On the contrary, if it fails to surpass this level, the price could stabilize around the support of 0.0990 dollars.
However, investors must be aware of the risks associated with trading memecoins promoted by celebrities, such as the frequent cases of pump and dump, where traders can incur significant losses.
Furthermore, it is assumed that the main holders of DADDY are the ‘insiders’. If they decided to sell, the value of the coin could plummet drastically.
Social media and brand of Andrew Tate: causes of the success of the memecoin
As mentioned, the crypto token DADDY has reached a market capitalization of over 120 million dollars, highlighting an increase of more than 35% in a single day and 80% in the last week.
This result marks a significant moment for the token, which benefits from the enormous following on social media and Tate’s 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 has allowed its early investors to achieve substantial returns. Among them is an investor who turned an investment of 2,000 dollars into 1.74 million dollars.
The success of DADDY is largely attributable to the figure of Andrew Tate, who has been able to leverage his social media following to promote the token.
The combination of an aggressive marketing strategy and the allure of Tate’s personal brand has led DADDY to become one of the most talked-about tokens in the cryptocurrency landscape.
