The recent Meme coin market drama is coming to an end. Behind the recent surge of a popular Meme coin, it is actually a typical case of emotion-driven hype—buying high is essentially giving away money. Let’s analyze with on-chain data why entering now is a trap:

First, look at the price performance. After a 52% surge within 24 hours, the "brilliant" rally, the price plummeted 2.18% in just one hour. This pattern of sharp rise followed by quick fall signals that buy orders simply cannot keep up. Looking at the trading volume makes it even clearer: only $7.57 million traded in 24 hours, and despite the price surge, trading volume is shrinking. What does this mean? Fresh capital is not entering to support the rally; it’s just existing holders flipping their positions.

Essentially, this is a pure Meme coin with no real-world application or fundamental backing. Its price is entirely driven by community hype and meme creation. Such coins rise quickly because of rapid emotional contagion, and they fall just as hard.

Another risk to watch out for is whale manipulation. On-chain monitoring shows that whales hold 75% of the USDT inflow into a major exchange for this coin, and the top 10 wallets hold nearly 60% of the total supply. These large holders have extremely low costs, and the current surge is the perfect window for them to cash out. Dumping could happen at any time. Historical patterns also show that similar Meme coins often crash 60% within a week after a surge. Once the emotional pulse dissipates, a sharp correction is highly probable.

In summary, shrinking volume rally, rapid rise and fall, whale control, and lack of fundamentals—all four signals are red flags. Chasing high at this stage is purely a gamble. The rational approach is to wait patiently for a correction; otherwise, you risk getting trapped at the top.