Deep Dive
1. Profit-Taking After Parabolic Rally (Bearish Impact)
Overview: 4 surged 231% in the past week, reaching $0.141 by October 4. Such extreme moves often lead traders to secure gains, especially with no fundamental updates to justify the rally.
What this means: The 24h dip aligns with typical market psychology—buyers take profits after rapid appreciation, while new buyers hesitate at elevated prices. The 30-day return mirrors the 7-day gain (+231%), suggesting the sell-off is a short-term correction rather than a trend reversal.
What to look out for: Sustained closes above the $0.14 psychological level could signal renewed confidence; breaks below $0.13 may extend losses.
2. Meme Farm Warnings (Bearish Impact)
Overview: A tweet on October 5 warned that 4’s developers are “creating many memes to farm users,” urging caution against potential scams.
What this means: Meme-driven tokens often face volatility from sentiment shifts. The alert may have spooked retail holders, accelerating sell orders. With 4’s 24h trading volume down 33% to $92.3M, thinner liquidity amplified the downward move.
3. Liquidity Drain Amplifies Swings (Mixed Impact)
Overview: 4’s 24h turnover (volume/market cap) fell to 0.653, indicating reduced market depth compared to its weekly average.
What this means: Lower liquidity increases slippage risk, deterring large buyers and making prices prone to exaggerated moves. However, the token’s $141M market cap still suggests moderate institutional interest, potentially cushioning steeper declines.
Conclusion
4’s dip reflects natural profit-taking after a speculative surge, compounded by scam warnings and fragile liquidity. Traders should weigh the token’s high-risk, high-reward profile against its meme-adjacent volatility.
Key watch: Can 4 stabilize above its 24h low of $0.141, or will fading momentum invite deeper retracements?