PEPE Coin, a meme coin on the Ethereum blockchain, is currently facing a potential 15% drop due to significant decreases in trading volumes and network activity.
PEPE Faces Threat from Diminishing Trading Volume
PEPE Coin is facing a potential 15% downside due to declining trading volumes, which have dropped to $980 million, and reduced network activity. Open interest and on-chain metrics are also showing negative trends, contributing to the bearish outlook. "The price of PEPE could see a major breakdown and slow towards the $0.0000085 to $0.0000080 area as it comes off of a symmetrical triangle." This indicates cautious investor behavior and potential shifts towards new meme coins.
Price Range Tightens Amid Whale Reluctance
As a result of the current situation, PEPE is exhibiting a price range of $0.00000960 to $0.00001000 while market capitalization is reducing. Long liquidations far exceed short positions, highlighting unilateral risk amid cautious whale behavior. Historically, meme coins like PEPE often lead to capital rotation into newer, higher-volatility projects.
Lessons from Dogecoin and Shiba Inu Downturns
Past declines of meme coins, such as Dogecoin and Shiba Inu, echo the current PEPE situation, where capital flows show interest in emerging projects amid bearish phases. These patterns demonstrate typical speculative behavior in the market. PEPE's current market status evokes industry parallels, with experts highlighting the absence of major regulatory updates.
With declining trading volumes and network activity, PEPE Coin risks facing a downturn. Current trends in the market suggest potential shifts in capital towards new meme coins.
