Myth: "If it already dropped 90%, it is cheap"
A common belief among memecoin traders: "If it already dropped 90%, it is cheap." Here is why that is a false — and what to do instead.
Verdict
False
The reality
A token down 90% from its high can just as easily drop another 90%. Price is not value here — a memecoin's "price" is set by the last trade against whatever liquidity exists, and a coin that has lost its attention usually keeps bleeding.
"Cheap" implies an anchor of fair value that memecoins simply do not have. A deep drop often signals a dying or rugged coin, not a discount.
Why the myth is wrong
- −90% can be followed by another −90%.
- Price ≠ value for attention-driven assets.
- A drop on draining liquidity is a rug, not a sale.
- Lost attention rarely returns.
- The prior high tells you nothing about the floor.
The rule to follow instead
Knowing the theory is great. Catching it live is better.
Get real-time Solana memecoin alerts the moment volume, buyers, and liquidity line up — free tier available, Pro $29/mo, Lifetime $499.
Education only — not financial advice. Memecoins are extremely high risk.
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