The Billy token price has defied gravity this week as other cryptocurrencies slumped. It jumped to a high of $0.1518 on Thursday before retreating to $0.13 at press time. It remains over 400% above its lowest point in June, giving it a market cap of over $130 million.
Two risks to know about
BILLY, an emerging meme coin on the Solana network, has performed impressively by surpassing Michi to become the leading Pump.fun coin in the market. Its surge comes amidst a period of struggle for most cryptocurrencies, with Bitcoin dropping below $60,000 and the total cryptocurrency market cap falling below $2.3 trillion.
However, there are two key risks to consider when investing in the surge of the BILLY token. First, there is the possibility that the token may follow the pattern of many meme coins that experience initial success and then collapse.
Tamadoge serves as a pertinent example of this trend. Despite reaching a market cap of over $175 million during its peak in 2023, the token has since plummeted, with its market cap now standing at just $2.4 million.
More recently, we have witnessed multiple meme coins like MOTHER Iggy and DADDY Tate surge initially and then face collapse. These tokens often crash due to insiders offloading their holdings to secure profits.
Notable instances of this include Beercoin and Water, which surged initially but experienced declines as insiders sold off their positions.
Crypto industry is not doing well
There are other potential risks for the Billy (BILLY) token, specifically if the cryptocurrency market performs poorly. The price of Bitcoin has fallen below $60,000 and may decrease to $50,000 if it breaches the critical support at $56,400. Generally, when the crypto market is not thriving, many other cryptocurrencies, such as meme coins like Dogwifhat and Book of Meme, tend to underperform.
Moreover, one risk associated with BILLY is the possibility of it being artificially inflated, which could explain its recent price rally. Pump and dump schemes are quite prevalent in the meme coin industry due to their lower prices and easy accessibility.
Technically, the recent surge in BILLY price is likely due to the token entering the markup phase, characterized by higher demand than supply. According to the Wyckoff Method, this phase is eventually succeeded by distribution, followed by markdown, resulting in a price decrease.
It’s important to note that while BILLY faces significant risks, it also has the potential to establish itself as a prominent meme coin, as seen with WIF, Floki, and BOME.
