Veteran crypto trader Ogle has cautioned investors about the risks of chasing low liquidity meme coins, warning that it takes only a handful of large holders cashing out to trigger a sharp market collapse.
In a July 13 post on X, the long time market participant pointed to the recent volatility surrounding CASHCAT, saying that massive unrealized profits, thin liquidity, and leveraged trading create the perfect conditions for prices to unravel in minutes.
Large Holders Can Trigger Rapid Sell Offs
According to Ogle, many traders are sitting on paper profits worth hundreds of thousands or even millions of dollars without realizing those gains. In smaller meme coin markets, he explained, just two or three major holders deciding to sell can spark a steep decline.
“When a ton of people have made hundreds of $k or $m in a token, unrealized, in this type of market, it only takes 2 to 3 of them to sell, especially if the token is small and has little liquidity, for everything to collapse quickly.”
He added that the risk becomes even greater when perpetual futures are involved, as leveraged traders can be forced into liquidations that accelerate the downward move.
CASHCAT, a meme coin built on the Robinhood Chain, recently surged more than 3,200% in a week, briefly reaching an all time high of $0.2288 and a market capitalization of roughly $226 million, according to CoinGecko.
Blockchain analytics platform Lookonchain highlighted several remarkable trades during the rally. One investor turned an $838 purchase of 15 million CASHCAT into more than $1 million, although holding a little longer could have increased that profit to nearly $2.9 million. Another trader converted just $69 into $711, but would have seen gains approach $2.7 million had they exited later.
The rally quickly reversed after Hyperliquid introduced perpetual contracts for the token. Ogle noted that the launch was followed by significant liquidations that intensified the selling pressure.
CoinGecko data shows CASHCAT plunged around 60%, with roughly 90% of leveraged long positions wiped out. Although the token later recovered to trade just under $0.16, it remained down more than 18% over the previous 24 hours and over 30% below its all time high.
Utility Tokens Offer a Different Risk Profile
While acknowledging that meme coins can generate explosive short term gains, Ogle said his biggest investment successes have come from utility driven cryptocurrencies such as Solana, BNB, Ethereum, Litecoin, and Bitcoin.
He argued that these assets typically require greater patience, with many investors losing interest before their long term value has a chance to materialize.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
