GUMMY has been trending since the beginning of this week, due to its airdrop that was launched yesterday.
The team behind this project has just distributed their airdrop to eligible users, which started a new trend of buying volume due to most claiming that it surged like other popular meme coins on Solana.
Why is GUMMY Going Up?
The airdrop itself was released through a tweet that gives detailed information on how to claim as well as how to be eligible for it.
The snapshot itself was just done tomorrow, which means that the team wasted no time launching their token through the airdrop.
In the tweet detailing the airdrop, it was mentioned that eligible users were chosen through their wallets, where the receiver of the GUMMY token airdrop are holder of the TOOKER Token.
Tooker is another meme-based project on Solana, which is an animated comedic carton/ comic project where the token has no real utility yet in its ecosystem.
The token supply of GUMMY itself stands at 1 Billion tokens, where 30% of the supply was distributed through the airdrop.
The team and founders behind this project received no allocations whatsoever, which means that the distribution of the supply is entirely up to the market.
However, there is a 20% allocation being kept by the team, which will be used for marketing. This means that there is a potential for another airdrop, which is why most people are buying this token as of right now.
Short-Term Price Prediction
With this trend, it is predicted that the token will go up again in the next 48 Hours, however, as most meme coins and tokens are, the price gain cannot be precisely predicted.
The prediction is based on the growing transaction volume as well as the market capitalization of this token in the last 48 Hours.
According to Dexscreener, the current volume of this token has reached $41 Million with a liquidity of $2.7 Million.
Since its volume is higher than its liquidity, this means that there is less potential for the token to go down, since not many can sell it.
However, this is also a sign that the token has a higher risk than other developed meme tokens since it will be harder to sell.
GUMMY’s Price Chart / Source: Dexscreener
Looking at the price movement, it can be seen that in the next couple of hours, there is a potential for the price to go down due to its buying volume decreasing.
This is in line with the Fibonacci Retracement tool, where the tool showed a support zone on the 61.8% level, around 0.000377 SOL.
This can be a good buying volume where if the price retraced from the golden ratio of 61.8%, then the price will eventually go back up to its highest price minimum, which is around the 0.0009 SOL mark.
The price gain might result in a more than 100% price gain in the next 48 Hours, which is why it can be good to keep an eye out for this token’s movement.
But remember, as this is a new token with an uneven distribution of holders, there might be volatilities along the way, which is why it is good to keep proper risk management as well as use a separate allocation of funds to keep the longevity of capital.
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