Memecoins are known for their volatile nature, often experiencing dramatic price swings due to fluctuations in liquidity. For example, on Binance, the two percent market depth for ACT is currently only $93,000 to the downside and $214,000 to the upside. This means that a market sell order of just $100,000 could cause the price to drop by more than 2%, as reported by CoinMarketCap.
Investors in memecoins should be aware of this volatility and be prepared for sudden price movements. It is essential to closely monitor the market and make informed decisions to mitigate potential losses.
Despite their unpredictable nature, memecoins continue to attract investors looking to capitalize on the high-risk, high-reward nature of these digital assets. By staying informed and exercising caution, investors can navigate the volatile memecoin market and potentially profit from its fluctuations.
