The once-thriving meme coin Pepe (PEPE) has hit a rough patch, seeing a… prices drop Nearly 10% in the last 24 hours. This sudden downturn comes amid a wave of questions surrounding massive token withdrawals from a major exchange and the general future of the meme-inspired cryptocurrency.
PEPE price falters
Just a few months ago, PEPE was on the rise, attracting the attention of cryptocurrency enthusiasts with its rapid price rise. However, the tides seem to have turned. The recent price decline has cast uncertainty over the future path of the memecoin.
While some may attribute the decline to a typical correction in the volatile cryptocurrency market, the latest on-chain data paints a more interesting picture.
Whale movements trigger FUD
According to Etherscan, a blockchain analytics platform, two days ago there was a massive withdrawal of nearly a trillion PEPE tokens worth approximately $8 million. The origin of the transfer remains shrouded in mystery, as the highly secure Gnosis Safe Proxy wallet facilitates the movement.
Source: Etherscan
This was not an isolated event either. The data reveals another withdrawal of 322.48 billion PEPE tokens, worth around $2.7 million, from the same mysterious address just one day earlier.
The timing of these massive transactions could not be more confusing. This coincided with an unexpected 17% rise in the price of PEPE, leading to speculation and fear, or FUD, within the cryptocurrency community.
Theories range from market manipulation tactics to the possibility of unexpected regulatory crackdowns, causing tension among investors.
Total crypto market cap currently at $2.2 trillion. Chart: TradingView
Community sentiment: Bullish although fluctuating
Interestingly, despite the price decline and the uncertainty surrounding it, CoinGecko data suggests that the PEPE community remains largely bullish. This unwavering optimism is reinforced by the influx of 703 new PEPE holders in the past day.
PEPE price action in the last 24 hours. Source: CoinMarketCap
PEPE price action in the last 24 hours. Source:Prominent figures in the cryptocurrency space, such as renowned analyst David Gochstein, who believes PEPE will remain Dogecoin's main competitor in the impending bull market expected later this year, are fanning the bullish flames.
I think you're going to see a crazy battle between… $baby & $dawg This season's meme.
– David Gokhshtein (@davidgokhshtein) May 6, 2024
Investing in PEPE: Proceed with caution
Meanwhile, as community sentiment leans toward optimism, and some experts see significant growth potential, the recent price decline and uncertainty surrounding large token withdrawals highlight the inherent volatility of the cryptocurrency market.
Featured image from KnowYourMeme, chart from TradingView
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