The rapid rise of Pepe memecoin (PEPE) to a market cap of over $1 billion, and the subsequent dramatic decline to below $500 million in a matter of days are examples of how unpredictable the world of cryptocurrencies can be.
PEPE is a joke digital currency that has recently garnered traction in the crypto industry. Meanwhile, according to the coin’s own official website, it is useless and lacks any real-world use.
Despite the token’s lack of potential utility, its price rose dramatically, propelling the frog-themed memecoin to rank among the top 100 cryptocurrencies in the cryptocurrency market.
However, after falling by almost 50% from its all-time high (ATH) of $0.00000431 to its current price of $0.0000012, investors and traders are wondering about this meme coin’s likely next step of movement.
Why is Pepe memecoin (PEPE) falling?
This week has been a disaster for the new PEPE meme coin. PEPE’s market cap has lost a staggering $500 million in the last 4 days after falling by more than 32% in the last 24 hours. Meanwhile, its trading volume has increased by 155% in the last 24 hours, signaling a rapid sell-off by investors.
The huge drop in PEPE’s price follows an extraordinary run last week when the token surged by several hundred percent and made many people overnight millionaires.
However, those who made millions from the PEPE purchases are fleeing. Per reports, many whales holding trillions of PEPE have cashed out significant sums, adding to the token’s recent selling pressure.
Binance, Gemini, and other popular centralized crypto exchanges also listed the token, propelling Ethereum deposits to highs not seen since November 2021. The crypto market analytics firm Santiment asserted that this was mostly because early PEPE investors secured profits by converting their holdings back into Ether.
However, despite this setback, it’s worth noting that some of the larger investors, often referred to as “whales,” have not yet sold off their holdings. This could suggest that these investors believe in the long-term potential of PEPE and are willing to weather the current market conditions in hopes of realizing greater profits in the future.
This guy bought 4.42T $LADYS($582K currently) with 299 $ETH($547K) and 90B $PEPE($147K).
His average buying price is $0.0000001569 and is currently in a floating loss.https://t.co/V7OQLbcbBo pic.twitter.com/t5Cg5svRFD
— Lookonchain (@lookonchain) May 11, 2023
Alternatively, it’s possible that these whales are simply waiting for a more favorable opportunity to sell their holdings and are biding their time until the market swings back in their favor.
Whatever the case may be, it’s worth keeping an eye on the movements of these whales and the impact they may have on the price of Pepe memecoin (PEPE) moving forward.