Pepecoin (PEPE), a once-promising meme token, has recently faced a significant setback, witnessing a staggering decline in both its price and market capitalization. The fervent frenzy that once surrounded this meme-inspired digital asset has faded, leaving investors questioning the future of Pepecoin.
Pepecoin initially captured the attention of crypto enthusiasts and meme lovers alike, leveraging the popularity of the iconic Pepe the Frog character. Riding the wave of meme-driven mania, the token experienced an exhilarating surge in value, captivating headlines and attracting a considerable influx of investors seeking quick profits.
However, this euphoric ascent was short-lived, and Pepecoin’s once unstoppable rise abruptly came to a halt.
PEPE Suffers Sharp Decline In Value
In a sudden turn of events, PEPE has experienced a significant downturn, as evidenced by its price on CoinGecko plummeting to an astonishingly low value of $0.00000102. The token has suffered a substantial 14.4% slump within the past 24 hours, and its decline over the course of the last seven days has been even more alarming, reaching a staggering 28.4%.
At its peak, PEPE boasted a market capitalization exceeding a billion dollars. However, the recent downturn has seen the token’s market cap dwindle to below $500 million as of press time. This equates to a drastic erosion of over 50% of its value on the price charts.
Meme Coin Struggles To Recover: Possible Explanations
Pepecoin’s failure to reach a corrective bounce raises questions about the underlying factors contributing to its downfall. While numerous elements could be at play, one possible explanation lies in the shifting market sentiment towards meme tokens.
These tokens, which often gain popularity through viral memes and social media trends, have faced increased scrutiny and skepticism as investors become more discerning about their investment choices.
As Pepecoin continues to grapple with its current predicament, market participants are left wondering whether the token can regain its lost value or if its decline will be a turning point for meme tokens as a whole.
SEC Lawsuit Vs. Binance Adds To Pepecoin’s Woes
The already beleaguered Pepecoin faces further challenges as the Securities and Exchange Commission (SEC) sues Binance, sending shockwaves through the cryptocurrency markets. The fallout from the lawsuit has caused a sea of red, with Bitcoin and other major cryptocurrencies experiencing bearish pressure.
Consequently, Pepecoin finds itself caught in the crossfire, as the weakening Bitcoin exerts additional downward pressure on the meme token.
This bearish move has amplified the selling pressure on Pepecoin, pushing it to retest its bullish order book (OB) at press time. The bearish sentiment surrounding Bitcoin has cast a shadow on the broader crypto market, including meme tokens like Pepecoin, and raised concerns about the token’s ability to sustain its value.
As Bitcoin’s weakness persists, Pepecoin remains vulnerable to further selling pressure. Analysts predict that a drop to $0.0000008579 or even lower is feasible if the bearish momentum continues.
-Featured image from PictureCorrect