Daddy Tate (DADDY), the Solana-based meme coin tied to controversial internet personality Andrew Tate, has staged a sharp rebound after tumbling to a new all-time low earlier this month.
At the time of publication, DADDY is trading at $0.02686, up 10.52% in the past 24 hours. Its market capitalization has grown from $14.4 million to $16.05 million, adding nearly $2 million in value overnight.
The recovery comes after Andrew Tate’s crypto sank to $0.02008 in early July, a level that attracted bargain hunters and appears to have set the stage for a short squeeze.
Daddy Tate coin short squeeze
A short squeeze occurs when a heavily sold asset experiences a sharp price reversal, forcing traders who had bet against it to buy back their positions, which in turn drives the price higher.
In DADDY’s case, the combination of low liquidity and concentrated whale holdings, with the top 10 wallets controlling about 18% of the supply, has amplified this effect, intensifying the price swing.
Technical indicators support the view of a short-term momentum shift. Daddy Tate coin’s relative strength index (RSI14) has climbed out of oversold territory after a month-long decline of nearly 14%, while the seven-day RSI is now approaching levels that signal the asset could soon become overbought.
The moving average convergence divergence (MACD) histogram has also flipped positive for the first time since June, hinting at easing bearish momentum. Price action has moved above the seven-day simple and exponential moving averages, though it remains well below the 200-day SMA at $0.0407, which continues to act as a major resistance level.
DADDY on-chain activity
On-chain activity reinforces the picture of heightened speculative trading. According to SolScan, both token transfers and decentralized exchange volumes have surged to their highest levels in a month.
However, 24-hour trading volume dipped by 12% to $1.35 million, raising questions about how much conviction lies behind the rally.
While the bounce has provided short-term relief for holders and sparked speculation of a larger reversal, the absence of strong fundamental catalysts suggests the move may be more of a temporary squeeze than the start of a sustainable recovery.
