Benzinga - In the ever-evolving world of cryptocurrencies, a new memecoin is making waves. Market intelligence platform Santiment has been closely monitoring the meteoric rise of HarryPotterObamaSonic10Inu, an ERC-20 token, which has surged by an astonishing 16,000%.
However, after such an impressive ascent, the question on everyone's mind is: Is this new Dogecoin rival due for a correction?
Chart: Courtesy of CoinMarketCap
Despite a series of retracements observed in many altcoins today, HarryPotterObamaSonic10Inu has managed to defy the odds, registering a price increase of 182% in August alone.
Santiment advises investors to keep a close eye on volume and network growth, indicating that a rise in these metrics is a positive sign.
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 & network growth (rise is good), & social dominance (rise is bad). https://t.co/NGd8rsWrek pic.twitter.com/ZMBXtAq4KUHowever, the firm also points out that an increase in social dominance could be a cause for concern.— Santiment (@santimentfeed) August 16, 2023
The current market sentiment among traders appears to be one of increasing complacency.
With markets struggling to gain momentum, Santiment has observed a higher ratio of loss transactions compared to profit-taking.
Historically, such a trend has often been followed by a market bounce.
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In the broader crypto landscape, Bitcoin (CRYPTO: BTC) continues to hover around the $28,000 mark.
Interestingly, this seemingly stagnant behavior is outperforming traditional equities markets, such as the S&P 500, for the month of August.
Santiment highlights that the decoupling between Bitcoin and equities, which started in mid-July, has historically been favorable for cryptocurrency prices.
As the crypto world watches with bated breath, only time will tell if HarryPotterObamaSonic10Inu will continue its upward trajectory or if a market correction is on the horizon.
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