In recent days, the cryptocurrency market has experienced significant fluctuations. Notably, Bitcoin (BTC) slipped below the critical support range of $97,000 to $99,000 after momentarily breaching the $100,000 mark. This downturn has had a ripple effect on various altcoins, including the frog-themed memecoin, Pepe (PEPE).
Pepe Coin’s Struggles Amid Market Volatility
Pepe Coin, a mid-cap memecoin, has faced substantial losses in the past 24 hours. With a fully diluted valuation approximating $7.6 billion and an average daily trading volume of around $2 billion, Pepe Coin experienced an 11% decline, dropping to approximately $0.00001816 during the early European trading session on Wednesday.
The heightened volatility in the market has led to over $5.6 million being liquidated from the leveraged Pepe market, with a significant portion, over $4.9 million, involving long traders. This trend mirrors the broader performance of memecoin projects, many of which have recorded double-digit percentage losses in the last 24 hours.
Major Factors Contributing to Pepe Coin’s Price Decline
The recent decline in Pepe Coin’s value can be largely attributed to whale shakeouts. A notable instance involved a whale investor who deposited over 427 billion Pepe units, valued at approximately $8.45 million, into Kraken over the past two days. This investor, holding 1 trillion Pepe units worth over $18 million, has realized an estimated profit of $13.45 million.
On-chain data analysis from Dexscreener reveals that the majority of Pepe trading in the past 24 hours involved more sellers than buyers. Of the $3.3 million traded on DeFi protocols, about $2 million comprised selling activities.
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Midterm Targets for Pepe Coin
After falling below the 50-day Moving Average (MA), Pepe Coin’s price trajectory suggests further potential losses. Despite being in a macro bull run on the weekly time frame, the memecoin faces the possibility of a midterm decline of 10-20% before possibly rebounding to new all-time highs.
The daily Relative Strength Index (RSI) for Pepe has dipped below the 50% mark, indicating stronger selling pressure in the midterm. However, the cryptocurrency market, including Pepe Coin, is eagerly anticipating new developments that could initiate the next bullish trend phase.
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Frequently Asked Questions
Is PEPE Coin Worth Buying Now?
While PEPE Coin is currently experiencing short-term volatility, there is potential for a rebound. Investors should weigh the risks carefully, as the price might decline further before reaching new highs.
Is PEPE Coin a Good Investment?
PEPE Coin shows promise for recovery. However, potential investors might consider waiting for signs of market stabilization following the current price decline to ensure better long-term prospects.
