A crypto analytics firm is exploring whether a volatile memecoin that’s reached a $160 million market cap in three months has more fuel in the tank.
Santiment says it’s keeping close eye a couple of indicators to predict whether the wildly-named and inherently risky dog-related coin known as HarryPotterObamaSonic10Inu (BITCOIN) is ready to cool down.
“The biggest memecoin on the block hasn’t stopped its pumping ways. Despite many altcoin retracements today, HarryPotterObamaSonic10Inu price is now +182% in August. Watch volume and network growth (rise is good), and social dominance (rise is bad).”
HarryPotterObamaSonic10Inu closed May at $0.00095 and at time of writing is trading for $0.157, a more than 16,400% increase.
According to Santiment, the broader crypto market is stalling out. However, the firm says as loss transactions mount, some blockchain projects may soon rally.
“Traders are showing more and more complacency among each asset as markets continue to fail to find any traction on a rally. Historically, this high ratio of loss transactions compared to any profit taking raises the probability of a bounce.”
Santiment also notices that Bitcoin’s price action is now showing a historically positive sign of de-correlating from the performance of the S&P 500 (SPX), which has declined so far in August.
“Bitcoin continues to stay in a tight price range at $29,400, but this flat behavior is actually outperforming equities markets like the S&P 500 here in August. The correlation break that began in mid-July is historically beneficial to crypto prices.”
Bitcoin is trading for $28,762 at time of writing, down 1.4% in the last 24 hours.
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