The popular meme-inspired cryptocurrency PEPE has seen a notable downturn, shedding nearly 5% of its value within the last 24 hours. This sharp correction comes amidst a flurry of liquidations and intense trading activity, raising questions about the stability of the broader memecoin market.
PEPE’s price descended from an intraday high of $0,000012023 to $0,00001119, as selling pressure proved overwhelming for any attempts at recovery. A key moment saw trading volume surge to an astounding 6,91 trillion tokens in a single hour, pushing the price towards a temporary ceiling near $0,000011692. However, this fleeting ascent was met with further resistance, as later trading sessions witnessed volumes exceeding 85 trillion tokens, ultimately driving the token toward its session lows. Even a potential support level at $0,000011525 failed to attract sufficient buying interest, underscoring a prevailing reluctance among investors to step in.
This underperformance isn’t isolated. PEPE’s struggles are set against a backdrop where the wider cryptocurrency market, as tracked by the CoinDesk 20 (CD20) index, dipped by a more moderate 1,35% over the same period. More tellingly, the dedicated memecoin sector, represented by the CoinDesk Memecoin Index (CDMEME), registered a steeper 6% decline. This stark contrast highlights the amplified volatility inherent in meme-inspired digital assets, especially when market sentiment turns.
The current sell-off appears to be largely influenced by significant movements from large holders, often referred to as ‘whales.’ Data from blockchain analytics firm Nansen indicates that ‘whale’ holdings of PEPE decreased by 0,1% over the past week. Concurrently, the amount of PEPE held on cryptocurrency exchanges saw a more substantial 0,5% reduction. This suggests that major investors are liquidating their positions, contributing to the heightened selling pressure and the token’s price depreciation. When large amounts of a token are moved to exchanges, it often signals an intent to sell, adding to market supply.
From a technical perspective, PEPE’s charts are painting a cautious picture. A consistent pattern of ‘lower highs’ — where each successive peak is lower than the last — combined with heavier selling volume, typically indicates a bearish trend. This suggests that without a significant shift in buying momentum, the path of least resistance for PEPE could be further downside.
The recent price action serves as a potent reminder of the inherent risks and rapid fluctuations within the memecoin space. As large investors continue to adjust their positions, the market will be closely watching whether PEPE can find a stable footing or if its downward trajectory will persist in the face of continued outflows.
