Despite Initial Optimism, Meme Coin PEPE Faces Downturn Just Like The Rest Of The Crypto Market
The price of PEPE, a meme-themed cryptocurrency, recently showed signs of an upward breakout from a descending wedge pattern, sparking initial optimism among investors.
However, the rally faltered abruptly, leaving the coin susceptible to a downturn.
Just Like All Meme Coins, Whales Dictated The Major Market Trend
If PEPE permanently loses its key support level at $0.00000624, it risks plunging to its lowest valuation in two months, wiping out any recent gains. On April 20th, a surge in buying pressure materialized, marked by a prominent green candlestick on trading charts. This enthusiastic buying spree, however, proved to be a double-edged sword.
It attracted the attention of major stakeholders, often referred to as “whales,” within the cryptocurrency community. These whales, holding significant meme coin PEPE assets valued between $10,000 and $10 million, saw an opportunity to capitalize on the price hike. Consequently, a wave of sell-offs ensued, with these whales liquidating over $120 million worth of PEPE within a mere ten days.
This massive sell-off by prominent holders effectively disrupted the coin’s budding rally, highlighting the inherent volatility of meme coins. Unlike established cryptocurrencies with wider adoption and utility, meme coins are often susceptible to such manipulative tactics by large investors who can swiftly swing market sentiment through strategic buying and selling.
In the realm of meme coin dynamics, large wallet holders typically act as liquidity providers, offering a degree of stability and support for the fledgling currency. Their actions influence market movements and investor confidence.
Mass Sell-Offs, As Witnessed With Meme Coin Pepe, Can Trigger Price Crashes
Further dampening the overall outlook for PEPE is the decline in network growth. Network growth, a metric that tracks the formation of new addresses on the blockchain, serves as an indicator of whether a cryptocurrency is gaining traction and attracting new users. Unfortunately, PEPE’s network growth has been on a downward spiral in recent weeks, reaching a two-month low. This decline suggests a lack of confidence not just from existing holders but also from potential new investors who are hesitant to enter the market amidst the prevailing uncertainty.
At the time of writing, PEPE’s trading price has dipped below the crucial support level of $0.00000633, settling at $0.00000618. This specific support level holds immense significance as it has served as a bulwark against price declines on several previous occasions. A sustained breach of this level is generally interpreted as a bearish signal, foreshadowing a potentially extended period of price drops.
If the current wave of pessimism continues to dominate market sentiment and dictate price action, PEPE could experience a significant decline, potentially plummeting to $0.00000474. This price point represents a retest of lows not seen since early March, marking a substantial setback for the cryptocurrency.
Still, A Glimmer Of Hope Remains
If investors can collectively push back against the prevailing negative sentiment and rally behind PEPE, a turnaround is not out of the realm of possibility. Should PEPE manage to reclaim and hold $0.00000633 as a support level, it would effectively invalidate the bearish thesis and usher in a recovery phase.
This much-needed rebound could propel PEPE’s price back to $0.00000700 and potentially even higher. A price resurgence would not only restore investor confidence but also stabilize PEPE’s market position, paving the way for future growth.
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