ELMO token has gained by as much as 70,000% since listing on the Raydium DEX a couple of days ago, with the new Solana-based coin reaching a record high of $0.001251 yesterday.
This makes ELMO the latest in a long line of SOL-based meme coins to have stormed the charts in recent months, yet it has already begun to fall away, with its price declining by 38% in the past 24 hours.
Such a steep drop-off introduces the possibility that ELMO may have already peaked and that it could have begun a long and largely irreversible decline.
However, there are other new tokens in the market with stronger fundamentals, with the popular Sponge (SPONGE) token launching the second version of its coin as it prepares to release a play-to-earn game.
ELMO Token Is Up 69,458%, But Already Falling
While ELMO has fallen quite dramatically in the past few hours, its chart offers some hope in that it has already recovered once from a big drop.
As readers can see below, the Elmo-themed meme token reached a couple of peaks during the middle of yesterday, before crashing towards the early hours of this morning.
Source: DEXTools/TradingView
However, it staged a comeback a few hours later, almost topping its current record high.
Yet it has fallen back down again, inviting doubts as to whether it can stage another temporary comeback, let alone a sustained recovery.
For this reason, it would be somewhat risky to invest in the ELMO token at this point, even if buying the dip is often a good idea with much more established – and fundamentally stronger – cryptocurrencies.
New Liquidity Pool Alert
Token: $ELMO – Elmo
Contract: 0xf4d1f8f3d98c71547469258a4347d2453dd72a5a
Analysis Highlights:
– High Buy/Sell Tax (25 / 29.4)
– Contract Wallet holding 26.84%
– Top 5 Wallets holding 10.00%
– Liquidity not burnt/locked yet…
— CryptoMonkey Eth Bot (@cmethbot) January 31, 2024
Indeed, analysis suggests that around 25% of all ELMO tokens are held in the token’s main contract, highlighting a risk of a big dump.
So even if it may recover again for a brief period, traders should prepare for the possibility that it will continue to fall soon afterwards.
Crypto Analysts Say This Lesser Known Crypto is Next
And it’s not even necessary to invest in extremely risky tokens such as ELMO, at least not when there are other high-potential coins that also offer something in the way of actual utility.
A very good example of such a token is Sponge (SPONGE), an ERC-20 cryptocurrency that is currently in the process of rolling out the second version of its token.
Already up by 42% in the past month, it originally listed on exchanges in April 2023, when it rallied by more than 150%.
The second version of its coin, known as SPONGE V2, will feature a new and more rewarding staking model, while it will also be the native token for a new play-to-earn game.
Huge milestone alert, #SPONGERS!
There are now over 6 billion $SPONGE tokens staked with a value of $3,958,206.14!
Our holders are enjoying an impressive current APY of +250%.
Join us and absorb the damp!! #SpongeV2 #Crypto #Web3 #Alts #100x pic.twitter.com/llxFF0hfby
— $SPONGE (@spongeoneth) January 26, 2024
The P2E game will be a SpongeBob-themed racer, inviting players to compete against each other and rank as high as possible on a global leaderboard.
The best performers will receive rewards in the form of SPONGE, which they will also be able to stake in order to earn a passive income.
Anyone interested in SPONGE V2 can claim it by visiting the official Sponge website, where they can either trade their old Sponge V1 tokens (on a 1:1 basis) or buy the newer version outright.
Probably the most bullish feature of the new coin is that its staking model will earn holders a higher yield, rising beyond 300% or even 400% depending on how many coins are staked and for how long.
Given Sponge’s existing popularity, some analysts have begun predicting that it could be one of several new meme coins to explode this year, earning early investors a nice profit.
And with over $4 million in Sponge staked, it seems that plenty of investors are showing their faith in the token.
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