In recent days, the meme coin PEPE has faced significant losses and a decline in investor interest, attributed to market volatility.
Diminishing Investor Interest
PEPE, which previously garnered considerable attention from retail investors, experienced a temporary boost in April when Elon Musk featured PEPE in his profile photo. However, interest in PEPE has waned, resulting in a marked decrease in trading volume.
Market Movements and Technical Analysis
According to technical analysis, PEPE's price fluctuated within a 16.1% range from 09:00 UTC on June 25 to 08:00 UTC on June 26. During this period, the price fell from $0.00001017 to $0.00000940, with the resistance level at $0.00001013 proving challenging during significant sell-offs on June 25. A short-term support zone formed in the $0.00000946-$0.00000950 range.
Market Dynamics and Investor Preferences
As Bitcoin's market dominance increases, selling pressure on smaller tokens like PEPE has intensified. Analysis indicates that in uncertain times, the market tends to shift towards larger, more stable coins, negatively impacting tokens like PEPE's position within the broader crypto ecosystem. CoinDesk Research stated, “PEPE has experienced a notable decline in investor interest amid increasing volatility.”
Recent movements in PEPE highlight a shift in investor interest towards larger crypto assets. Expectations regarding renewed interest and upward trends will likely depend on market risk appetite.
