Despite having recovered most of its losses, there are reasons to believe that the coast is not yet clear for PEPE.
new mem token pepe coin It has enjoyed good luck lately after its price surged by over 2000% shortly after its launch a few weeks ago. However, it appears to have lost momentum now and is at risk of losing a major chunk of earlier gains.
On Wednesday, PEPE registered a sharp correction, losing more than 35% of its all-time high value of $0.00000138, which it attained on May 1. The loss immediately affected PEPE’s market capitalization to negative $80 million. It was also enough to knock the coin out of the top 100 cryptocurrencies.
However, as of publication, the coin has recovered its Wednesday losses. Now it is up 73% in the last 24 hours. according to coinmarketcap statisticsPEPE is currently trading at $0.000001608.
PEPE Coin Could Still Lose More Value in May
Despite having recovered most of its losses, there are reasons to believe that the coast is not yet clear for PEPE. At least, not for May, where it risks losing at least 20% of its current value.
To put the above statement in perspective, some indicators suggest further downside in PEPE price. First, there is the issue of diminishing returns. Google Trends shows that searches for the keyword “Pepe Coin” have gone from 100 to 7 in just one day. This further proves that the dust is settling and the entire buzz around the coin may just fade away. Furthermore, the daily trading volume has also dropped Despite the drop in prices both centralized and decentralized exchanges.
Another thing that can be seen as the basis for further decline in the price of the coin is the fear of possible price manipulation. As revealed by data tracker CoinCorp, PEPE has a suspicious whale distribution. This is because 45% of the tokens in circulation are currently being controlled by the top 100 richest PEPE addresses – PEPE whales.
But while these addresses can belong to up to 100 different individuals, it is also possible for one individual to control more than one. Therefore, certain groups of people, or whales in this case, can manipulate PEPE price trends in their favor as time passes. CoinCorp’s revelation, thus makes room for skepticism and expectations that PEPE price will fall further in the month.
Too early to predict?
Although it should be noted that the PEPE token has only been on the market for a few weeks. Therefore, it does not have enough price history to forecast price movements.
However, Dogecoin (Doge) has shown that meme coins like PEPE can be very unpredictable. They can cause major value changes over time and should never be written off. For example, DOGE on its part has increased by over 7000% since 2020 Elon Musk Gave it my voice.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. Although away from crypto, Mayowa’s distractions include discussing soccer or world politics.
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