PEPE Coin, one of the most talked-about meme cryptocurrencies, faced a sharp decline, losing about 80% of its value. The main reasons and potential recovery paths are discussed below.
Current State of PEPE Coin
In the past 24 hours, PEPE's price has declined by more than 27%. According to CoinMarketCap, at the time of writing, PEPE Coin was trading at $0.000059795, indicating significant selling pressure. The primary reason for such a steep decline is the liquidation of tokens by large holders.
Factors Contributing to the Decline
The key drivers of the sell-off were policies like the Trump Tariffs and the activity of large investors known as 'whales'. According to analytical data, more than 1.1 trillion PEPE tokens have been liquidated recently. One whale transferred 430 billion PEPE, worth $6.39 million, to Binance within just nine hours, further escalating the sales pressure.
Prospects for Recovery
Despite the significant drop, some market indicators suggest that PEPE might rebound. One critical factor is the MVRV ratio, which in the past, led to a price increase by 72% when reaching certain levels. Additionally, PEPE's exchange reserves are decreasing, indicating that investors are moving their tokens to private wallets, thus reducing selling pressure.
Market conditions and investor sentiment will ultimately determine if PEPE can turn around. If buying intensifies and whales halt selling, it could lead to a reversal. However, given the volatility of meme coins, the recovery of PEPE cannot be guaranteed.
