Berquin, the very popular Solana The meme coin has fallen hard in the past few days. After peaking at $0.00057 this month, it fell more than 68% to trade at $0.00018. This collapse brought its market value to more than $100 million, down from its peak of $282 million.
The collapse of the Beercoin token is in line with the ongoing downward trend in the cryptocurrency industry. Bitcoin traded below $66,000 on Monday while most altcoins fell more than 10% over the past 24 hours.
A likely reason for the sell-off is the Federal Reserve’s decision last week in which officials indicated it would cut interest rates only once this year. Many believe the Fed will not cut interest rates at all this year, as inflation remains stubbornly high.
Cryptocurrencies, especially meme coins like Beercoin, are expected to underperform when the Fed is too hawkish. Beercoin is also falling as some of its biggest whales continue to dump the token. Data analyzed by LookOnChain shows that an insider sold tokens worth more than 5.4 billion on Sunday.
And the insider wasn’t alone, as another insider dumped 5 billion tokens worth $1.08 million on the same day. On Friday, another pre-sale participant sold the $BEER token for a profit of $1.3 million. While this was happening, X’s official account Strengthen Token.
Inside sales are one of the most obvious red flags in the investing world since these individuals have more knowledge and insight about their entities.
Percoin price forecast
I expressed a neutral outlook for BEER in my last forecast and warned that it could decline as holders start taking profits.
This prediction was correct as the token has fallen more than 50% since then. On the three-hour chart, we see that the Beercoin token peaked at $0.00056 last week and then declined amid heavy internal sales.
It fell below the key support level at $0.00033, the June 6 low. Also, the currency remained below the 25-period and 50-period moving averages. It found strong support at $0.000015.
Therefore, Beercoin price is likely to see a bearish breakout as sellers target the key support level at $0.000080, its swing low on June 13.