Summary:
Meme-inspired cryptocurrency PEPE experienced a nearly 5% decline over the past 24 hours due to increased whale selling and exchange outflows. The token dropped from $0.000012023 to $0.00001119, with trading volume spiking to 6.91 trillion tokens in a single hour. The memecoin has underperformed the broader cryptocurrency market, reflecting the inherent volatility of memecoins when large holders exit positions.
What This Means for You:
- Be cautious with memecoin investments due to their high volatility.
- Monitor whale activity and exchange outflows for early warning signs of price drops.
- Stay informed about market trends to make better trading decisions.
- Expect continued volatility in the memecoin sector based on current market conditions.
PEPE Falls Nearly 5% as Whale Selling and Exchange Outflows Rattle Memecoin:
Meme-inspired cryptocurrency PEPE slipped nearly 5% in the last 24-hour period under a wave of liquidations and record-setting trading activity.
The token dropped from $0.000012023 to $0.00001119 as bears overwhelmed attempts at recovery. At one point, trading volume spiked to 6.91 trillion tokens in a single hour, setting a ceiling near $0.000011692, according to CoinDesk Research's technical analysis data model.
The selling pressure wasn’t isolated. Late-session trading saw further rejection at $0.000011549, while volumes surged past 85 trillion tokens, forcing the price toward a session low.
Even when PEPE approached what looked like support at $0.000011525, the lack of meaningful buying activity underscored market reluctance. That level failed to attract enough interest to reverse course, signaling possible further declines.
The memecoin has underperformed the wider cryptocurrency market, as measured by the CoinDesk 20 (CD20) index, which dropped 1.35% in the past 24 hours. The memecoin sector, based on the CoinDesk Memecoin Index (CDMEME), plunged 6%.
The market’s reaction shows just how volatile memecoins remain, especially when large holders decide to exit. Nansen data shows that over the past week whale holdings dropped by 0.1%, while PEPE on exchanges dropped by 0.5%.
The charts shows a pattern of lower highs and heavier selling, a combination that usually spells more pain ahead.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
Extra Information:
For further insights into memecoin volatility, check out this CoinDesk article on memecoin market dynamics. Additionally, this Nansen guide provides valuable data on whale activities and token distributions.
People Also Ask About:
- Why are memecoins so volatile? Memecoins are highly speculative assets influenced by market sentiment and whale activities.
- What causes sudden drops in memecoin prices? Sudden drops are often triggered by large-scale sell-offs and increased exchange outflows.
- How can I track memecoin market trends? Use tools like Nansen and CoinDesk to monitor whale movements and trading volumes.
- Is investing in memecoins risky? Yes, due to their high volatility and speculative nature.
- What are the signs of a potential memecoin crash? Look for patterns of lower highs and increased selling pressure.
Expert Opinion:
The recent decline in PEPE highlights the inherent risks and volatility associated with memecoins. Investors should remain cautious and stay informed about market trends to mitigate potential losses.
Key Terms:
- Memecoin volatility
- Whale selling in crypto
- Exchange outflows impact
- PEPE cryptocurrency
- Memecoin market trends
ORIGINAL SOURCE:
Source link
