In a surprising turn of events, the price of Bitcoin (BTC) has slipped below the crucial support range of $97k to $99k, after having flirted with the $100k mark in recent days. This downturn has had a significant impact on the frog-themed memecoin, Pepe (PEPE), which has experienced notable losses over the past 24 hours.
Pepe’s Price Drop: A Closer Look
Pepe, a mid-cap memecoin with a fully diluted valuation of approximately $7.6 billion and a 24-hour trading volume averaging around $2 billion, saw a decline of over 11% in the past 24 hours. Currently, it trades at approximately $0.00001816, as observed during the early European session on Wednesday. The increased volatility in the market led to the liquidation of more than $5.6 million from the leveraged Pepe market, with over $4.9 million involving long traders. Additionally, many memecoin projects have registered double-digit percentage losses over the last day.
Major Factors That Attributed to Pepe’s Price Drop
The substantial decline in Pepe’s price is largely due to whale shakeouts. Recently, a whale investor holding 1 trillion Pepe units, valued at over $18 million, deposited over 427 billion units, amounting to approximately $8.45 million, to the Kraken exchange within the past two days. This whale has reportedly accumulated an estimated profit of around $13.45 million.
On-chain data analysis from Dexscreener reveals that Pepe’s trading activity in the past 24 hours has involved more sellers than buyers. Out of the $3.3 million worth of Pepe traded on DeFi protocols, approximately $2 million was associated with sellers.
Pepe’s Midterm Targets
Pepe’s price has recently fallen below the 50-day Moving Average (MA), entering a precarious phase that may lead to further losses in the days ahead. Despite being in a macro bull run on the weekly timeframe, Pepe faces a potential midterm drop of 10-20% before potentially rebounding towards a new all-time high (ATH).
Moreover, the daily Relative Strength Index (RSI) has slipped below the 50% mark, indicating that sellers have gained the upper hand over buyers in the midterm. However, the entire cryptocurrency industry, including Pepe, is eagerly anticipating the inauguration of the next U.S. president, which could potentially trigger the next bullish trend phase.
Donald Trump, a prominent figure in American politics, served as the 45th president from 2017 to 2021. His policies, including a travel ban on several Muslim-majority countries and a focus on border security, have made him a significant figure in the Republican Party. Trump remains a potential candidate for the 2024 presidential election, and his return to the political arena could have a substantial influence on market trends.
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FAQs
Is PEPE coin worth buying now?
PEPE coin is currently experiencing short-term volatility but holds the potential to rebound. Investors should weigh the risks carefully, as the price might decline further before reaching new highs.
Is PEPE coin a good investment?
While PEPE shows potential for recovery, it may be wise to wait for signs of stabilization after the current price decline to ensure better long-term investment prospects.
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