A wider cryptocurrency market bull run ignited in early November. While large-cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) saw significant moves to the upside, altcoins and meme coins saw even more impressive gains in the tail end of 2024.
While we’ve seen already established meme coins like Dogecoin (DOGE) provide triple-digit returns, the meme coin market is no less dynamic than it was last year — and even completely new entrants are seeing rapid moves to the upside.
Recently, a meme coin on the XRP Ledger saw one such significant increase in price — at present, Kitty Cup (KCUP) is trading some 85.66% above yesterday’s prices. The question is — is this rally at all sustainable?
KCUP was launched on October 22 — at present, it is trading at $0.001129, up from $0.0006114 on December 29, and has a total market capitalization of just $1 million.
KCUP price 1-day chart. Source: TradingView
The rise of this XRP meme coin is impressive — but likely won’t continue
As seen in the chart above, KCUP’s price action has been quite volatile in the near term. Such sharp movements are indicative of low liquidity. Except for the largest candles seen in the chart, KittyCup does indeed exhibit a low level of trading volume.
In addition, there was no notable catalyst behind the surge — this was apparently just another instance of the Internet really loving cats, which are arguably one of the most common sources of memes in general.
Nonetheless, when utility and fundamentals are out of the question, investors simply move on to other criteria they consider important. There is a significant degree of optimism regarding KCUP online — with traders citing the fact that it is the only cat-themed cryptocurrency on the XRP ledger and that the meme it is based on has demonstrated a strong degree of staying power in an otherwise ephemeral space.
While those arguments certainly might be true, this is still essentially a bet on the opaque whims of the Internet — there are no reliable ways to analyze an asset such as this, so it, unfortunately, remains relegated to being a speculative bet.
Featured image via Shutterstock
The post XRP meme coin price soars 85% in a day appeared first on Finbold.