- Investors and traders are drawn to small-cap tokens on the Solana network.
- The bullish sentiment helps tiny tokens gain nearly 1000% in a day as participants are eager to buy the next 100x.
HahaYes [RIZO] crypto saw an 830% rally in 20 hours on the 17th of November. Since then, RIZO the hedgehog meme coin has seen a 61% pullback in 12 hours. As a token with a market capitalization of only $27 million, wild volatility is natural.
Source: The Block
The surge in meme coin-related activity on the Solana network was evident from its rising transaction activity. The 7-day moving average has shown a steady uptrend since early September.
Bitcoin’s [BTC] breakout past the previous all-time high in early November inspired more bullish confidence in the crypto sphere.
Source: The Block
The surging meme coin activity saw new addresses created. Like the gold rush events from the 19th century, traders and market participants are drawn to the allure of small cap coins on the Solana network and the possibility of making a 10x or even a 100x.
One of the most famous and most recent examples are Peanut the Squirrel [PNUT] which was at a market capitalization of $1.6 billion at press time.
Can RIZO crypto replicate these enormous gains?
Source: RIZO/USD on CoinMarketCap
The 1-hour chart of RIZO has a bearish market structure, and the Awesome Oscillator showed downward momentum was strengthening. Yet, the bearish bias is only short-term.
The Fibonacci retracement levels showed that the $0.171 (market price multiplied by 1,000,000 for legibility) is a support level.
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Its retest would present a buying opportunity. The swift price spike in recent days showed the market’s hand and outlined conviction in the token.
More gains are likely, but it is uncertain whether those gains can be as explosive in size or speed.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
