The MOTHER token has made headlines in the past few weeks as investors pushed it to a record high of $0.25. It has now pulled back by almost 50% as traders book their profits. This crash happened even after some positive developments in the ecosystem. So, is Rapper Azalea’s token a good investment?
What to know about the MOTHER token
Meme coins have done well in the past few weeks. We wrote that they have become assets worth over $60 billion, making them more significant than well-known and highly profitable companies like Heineken, Moderna, General Motors, and Workday.
Celeb-themed tokens have become highly popular recently. Musician Davido recently made headlines when he launched a token that cashed out at almost $500k. Other popular celeb tokens are based on Donald Trump, Joe Biden, and Caitlin Jenner.
Rapper Iggy Azalea, well-known in the music industry, launched her token $MOTHER this month. At its peak this week, it had a market cap of over $200 million, making it one of the biggest in the industry.
Despite the risks, the MOTHER token has achieved significant milestones. It has been listed on many crypto exchanges, like HTX, MEXC, and Raydium. Most notably, it was incorporated by Magic Eden, one of the largest NFT marketplaces on Solana, enabling users to purchase NFTs using the token. These achievements demonstrate the potential of celeb-backed tokens, but also the need for careful consideration before investing.
So, is Azalea’s token a good investment? It is highly risky to invest in celeb-backed tokens for three reasons. First, as we saw with celeb NFTs, these investments don’t end well. Most Bored Ape Yacht Club (BAYC) NFTs, for instance, have crashed hard in the past few months.
Second, it’s important to note that these tokens often have a short lifespan. Investors tend to buy and sell them within a few days to capitalize on the hype, which can be a risky and short-lived investment strategy. Third, these tokens can experience rapid crashes as the initial hype subsides and new tokens emerge.
MOTHER token price forecast
The MOTHER token price surged to a high of $0.2600 this month as the hype rose. It has now crashed by almost 50% as many traders cash out. On the 2-hour chart, it has crashed below the ascending trendline shown in red, meaning that sellers are gaining traction.
MOTHER, a Solana-based token, has also formed a three black crows pattern and moved below the 25 and 50-period moving averages pattern. Also, the Relative Strength Index (RSI) has moved below the neutral point. It also formed a triple-top pattern pointing to more downside. If this happens, it will likely crash to $0.10.
