Bitcoin (BTC) recently experienced a dip below the support level of $97k to $99k after briefly hovering above $100k. In this turbulent environment, the frog-themed memecoin, Pepe (PEPE), has not escaped the fallout. Over the last 24 hours, this mid-cap memecoin has seen a significant decline, trading down more than 11 percent to approximately $0.00001816 during the early European session. The coin’s fully diluted valuation stands at about $7.6 billion, with a 24-hour average trading volume of around $2 billion.
The increased market volatility has led to over $5.6 million in liquidations within leveraged Pepe markets, with $4.9 million linked primarily to long traders. A broad range of memecoin projects has suffered double-digit percentage losses, reflecting a challenging market.
Key Factors Behind Pepe’s Price Drop
One major factor contributing to this decline is the significant number of whale selloffs. Notably, a whale investor holding 1 trillion Pepe units, valued at over $18 million, recently offloaded 427 billion Pepe units—around $8.45 million—to Kraken in just two days. This whale now boasts an estimated profit of $13.45 million, illustrating the heightened pressure from large investors in the market.
Recent on-chain data analysis from Dexscreener indicates that during the last 24 hours, more sellers were active than buyers in Pepe transactions. Out of the $3.3 million traded on DeFi protocols, approximately $2 million comprised sales.
Market Outlook for Pepe
After slipping below the 50-day Moving Average (MA), there’s a dangerous potential for Pepe’s price to continue its downward trend, with predictions suggesting a midterm drop of 10-20 percent before there’s hope for recovery towards a new all-time high (ATH). Even though Pepe remains in a macro bull run on the weekly chart, the Relative Strength Index (RSI) has dipped below 50 percent, indicating that sellers have taken control for the time being.
The crypto community is keeping a close eye on the inauguration of US president-elect Donald Trump, hoping it may ignite the next bullish phase for the market.
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FAQs
Is PEPE coin worth buying now?
While PEPE coin is experiencing short-term turbulence, there is potential for a rebound. However, weigh the risks carefully, as further declines may occur before any upswing.
Is PEPE coin a good investment?
PEPE shows signs of potential recovery, but it may be wiser to await indications of stabilization post-decline for more favorable long-term investment opportunities.
Tags: Meme Coins
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