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MICHI price crashed hard on Thursday, making it one of the worst-performing cryptocurrencies in the market. The token was down by over 21% to trade at $0.1340, its lowest level since June 25th of this year. It has plunged by more than 50% from its highest point in June.
Lucky trader capitulates
Michi token has plunged as a lucky trader capitulated and dumped his holding. Data identified by LookOnChain showed that a trader sold 8.6 million MICHI tokens at a price of $0.1557. He made a profit of $1.24 million.
The trader bought the MICHI tokens in April for $103k and saw the value jump to over $5 million at its peak. Still, turning $103k into $1.24 million is an exciting investment return considering that most crypto investors have lost money this year.
His decision to sell the meme coin partly explains why the token has crashed by over 50% in the past few days. There is a possibility that he believes the Michi token has more downside in the coming months.
For starters, Michi is a relatively new token that was created using the Pump.fun platform. It is based in Solana, which has become one of the best blockchains because of its speeds and low transaction costs.
Michi’s crash happened as a new Pump.fun token became one of the best-performers this year. Billy, which describes itself as the most beautiful dogs in the Solana ecosystem, has soared and accumulated a market cap of over $130 million.
Other Pump tokens have also crashed. For example, MOTHER Iggy, the token promoted by Rapper Iggy Azelia, has crashed by more than 70% from its all-time high.
Similarly, DADDY Tate, which is associated with Andrew Tate, has also plunged by double digits. JASON, a token known for its links with Jason Derulo, has also retreated this year.
Bitcoin and other coins have plunged
MICHI’s price action has also coincided with the ongoing meltdown in the crypto industry. Bitcoin slipped below $60,000 overnight and was trading at $58,000 on Thursday.
Other well-known tokens like Ethereum, Ripple, and Cardano have also plunged. The same is happening in the meme coin industry. Once valued at over $63 billion, data shows that its market cap has dropped to over $43.1 billion.
Most meme coins, including Pepe, Dogwifhat, Floki, and Book of Meme have all slumped by over 12% in the past 24 hours.
Will MICHI price bounce back?
Therefore, the question among traders is whether the price of Michi will bounce back now that it has moved into a deep bear market.
The token faces substantial challenges for now since investors have turned fearful. Indeed, the crypto fear and greed index has dropped from over 90 this year to below 43 today. In most cases, cryptocurrencies tend to drop when there is fear in the market.
Therefore, there is a likelihood that the MICHI token will likely continue falling for now. The trend will accelerate if Bitcoin drops below $55,000, which will open the possibility of it moving below $50k.
The other big risk is that MICHI could become similar to other meme coins that thrived and then imploded. A good example of this is Tamadoge, which accumulated a market cap of over $270 million in 2022. Today, the token has a market cap of less than $3 million.
Most recently, we saw meme coins like DAVIDO, BeerCoin, and WATER surge and then collapse.
On the positive side, there is another possibility where MICHI does what Bonk did in 2023. It initially jumped in January last year, then crashed, and finally bounced back during the recent altcoin season.
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