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Snek (SNEK) Meme Coin Saw Enormous 200% Price Spike

Fri, 06/02/2023 - 09:05
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Arman Shirinyan
Prominent Cardano-based meme coin faces some issues with liquidity
Snek (SNEK) Meme Coin Saw Enormous 200% Price Spike
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In a recent surprising twist in the world of meme coins, Cardano-based Snek (SNEK) experienced a massive 200% price spike. But as dramatic as this leap may seem, traders and investors should take note: this spike was only a momentary wick caused by a lack of liquidity on the decentralized exchange, not a fundamental surge in SNEK's value.

Decentralized exchanges, or DEXes, can often show dramatic price fluctuations due to the nature of their liquidity mechanisms. In the case of SNEK, the sudden price spike was a temporary anomaly rather than a reflection of an uptick in demand or a significant shift in market sentiment.

Cardano Meme Coin SNEK Gets Listed on New Exchange

The meme coin, like many of its peers, has experienced a reversal trend, shedding approximately 33% of its value from its local all-time high (ATH). This downward trajectory is not unique to SNEK and often characterizes the volatile and speculative nature of meme coins.

It is important to stress that this price drop is not indicative of any rugpull or scam associated with SNEK. Instead, it reflects the nature of the meme coin market, where prices can fluctuate widely in response to changes in investor sentiment, market trends and the broader cryptocurrency landscape.

While the recent dip might cause some concern, the inherent volatility of meme coins means that price swings, both upward and downward, are part of the journey. It is crucial for potential investors to understand this volatility and conduct due diligence before diving into the meme coin market.

As for SNEK, the community remains watchful. Despite the recent price drop, interest in SNEK and other meme coins on the Cardano blockchain persists as the TVL, trading volume and overall network activity remains at a relatively high level.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.