is this a dead cat bounce?

DADDY Tate token price is divergent from Bitcoin and other altcoins this week, as it jumped to its highest level since June 15

DADDY Price Chart

The token, promoted by Andrew Tate, rose to $0.2290 on Thursday, up 170% from its low point on June 22. This recovery has pushed its market cap to over $113 million, according to DEX Tools.

DADDY’s rise comes at a time when the cryptocurrency market has been in the red, with Bitcoin falling below $60,000.

Other celebrity-themed tokens have also retired. MOTHER, the token promoted by Iggy Azelia, fell to its lowest point since June 1. Similarly, Jason Derulo’s JASON token fell to an all-time low and is down more than 75% from its high point last week.

DADDY token has rallied in a high volume environment. Data from CoinGecko shows that daily volume rose to more than $31.7 million on Thursday, up from $15 million on Wednesday. Before that, volume had averaged less than $10 million per day.

Daddy Tate token has surged as the number of holders jumped to over 48,000 and could rise to 50,000 if the trend continues.

There has been no major news driving the token this week. Therefore, the rally is likely because Andrew Tate has continued to promote the token on X and other social media platforms.

It also rallied as traders continued to push it in hopes of hitting a $300 million market cap. If that happens, Tate has promised to buy and burn $1 million worth of tokens.

A token burn is the process of depositing tokens into an address that cannot be accessed and is a good value creation process for the remaining tokens. DADDY Tate is also jumping due to the Fear of Missing Out (FOMO) in the market.

However, there is a risk that this bounce could be a dead cat bounce, where a falling asset experiences a brief bounce and then resumes its downtrend.

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