WaterCoin (WATER) price has suffered a harsh reversal in the past few days as some holders have started to reduce their stakes in the token. $WATER has dropped for three days straight and was trading at $0.0017, down from this week’s high of $0.003475.
What is WATER in crypto?
Meme coins have become some of the best-performing cryptocurrencies this year, with tokens like Pepe, Dogwifhat, and Floki beating other top crypto coins like Bitcoin and Solana.
These tokens have also flooded the market because of their ease of launch. Some of the most popular launches this year were Book of Meme, Jeo Boden, DADDY, and Mother Azalea, most of which were launched on Pump.fun.
Developers have launched these tokens according to different themes. Political tokens track the likes of Joe Biden and Donald Trump, while MOTHER and DADDY are focused on celebrities.
Another minor theme in the sector is on drinks. A few weeks ago, a developer launched Beercoin, a new meme coin meant to celebrate the popularity of beer.
Watercoin is a new Solana meme coin that the developers hope will become popular because of the importance of water in the economy. According to its website, water tastes great when you are thirsty. One needs water after too much alcohol, which is scarce, and you drink it daily.
WATER had a strong start to the week, reaching a record high of $0.003475 on Tuesday. However, it has since experienced a significant drop of over 51% from that high, with its market cap decreasing from over $300 million to about $150 million today.
That retreat happened as data showed that some whales were selling the token. For example, data by Solscan shows that one of the biggest holders moved tokens worth $191,120 on Thursday.
Two days after on-chain data revealed that the developer had transferred 844.4 million of $WATER to 11 new wallets, a significant transaction occurred.
What next for the WATER token?
WATER token initially jumped after its launch on centralized and decentralized exchanges and then crashed amid fears that big whales were exiting. That is exactly what happened with BeerCoin, which initially jumped to $0.00057 and then crashed by 91% to $0.000046.
It is also what happened with Andrew Tate’s DADDY and Iggy Azalea’s MOTHER tokens, which pumped initially and then dropped massively. Therefore, we can rightly say that the WATER token too will continue falling in the near term as sentiment in the crypto industry worsens. If this happens, it could drop to the next support at $0.0012.
