- CateCoin’s massive surge leaves SHIB’s rally behind dust. Resulting in SHIB’s rally looking reasonable.
- Netizens believe SHIB not to be a meme coin, owing to its growing utility.
Meme coins are leading a stupendous rally, resulting in traders and investors considering to get hold of one. Which could add up value to their portfolio. Not one, but many meme coins in the market have given out exponential gains. While SHIB’s rally is praised by many in the space and seems unreasonable to the masses. CateCoin’s rally leaves SHIB’s rally in the dust.
Consecutively, CateCoin has surged around 8000% in 7-days, which most of the investments cease to give out in a year’s time. On the other hand, sections believe SHIB to no longer be a meme coin owing to its growing utility and acceptance. Like the blockchain under pipeline, ShibaSwap, Shiboshi’s NFT marketplace, number of holders. And it being used as a payment option with Nowpayments, Shopping Io.
The Psychological Market Cycle of Meme Coins
The graphical representation seems to be a well-sought analysis of the psychology of a market cycle. Which is highly relatable with meme coins particularly. As the cycles are generally short-lived in the case of meme coins.
The rally starts with disbelief that the rally could fail like others. Then optimism comes into the picture when the trader’s faith in the coin rises. Which further evolves into belief where traders put in their money. The next phase is the thrill, where buyers and sellers are enticed by the gains. And look no further to buy out of greed, hoping for an upswing.
Then arrives Euphoria, where the coin is at its peak, and traders are highly optimistic about getting rich. Complacency is then followed, when the marketeer’s calm down from the corrections. And wait for the next rally to initiate. With further plummets, anxiety creeps in and the dip seems to be longer than expectations.
Further, the phase of denial starts, when the traders believe their holdings to be in great companies. And that they will bounce back. But, the dreading phase of panic creeps in, creating FUD. Where traders start liquidating their holdings. Panic selling further leads to capitulation, where hodlers wish not to lose more. The losses lead to anger, and further finds a way to depression and disbelief.
Collectively, the representation is a perfect amalgamation of how sentimental belief transits in cycles with meme coins. The analyst shed’s light on the fact that if a meme coin doesn’t have substantial meme’s output in social media. That meme coin isn’t sustainable during downtrends. This is vital to consider before making any moves, as masses get into the world of meme coins.