Is The PEPE Dream Over? Dissecting The Factors Behind The Meme Coin’s Price Tumble

Christian Encila

11 months ago

3 mins read

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Pepe (PEPE), once-booming meme coin, has had a difficult ride and dropped around 10% during the previous 24 hours. This abrupt decline coincides with a flurry of queries about significant token withdrawals from a big exchange and the general viability of the meme-inspired cryptocurrency.

PEPE Price Takes A Tumble

PEPE was riding high just a few months ago, attracting crypto aficionados with its quick price swings. But the tides seem to have flipped. The latest price dip clouds the future course of the meme coin with questions.

Although some might blame the decline on a normal volatility correction in the bitcoin market, fresh on-chain data presents a more interesting picture.

Whale Movements Spark FUD

Two days earlier, Etherscan, a blockchain analytics tool, reports that roughly 1 trillion PEPE tokens—worth almost $8 million—were taken out. With a high-security Gnosis Safe Proxy wallet enabling the movement, the source of the transfer is nevertheless unknown.

Source: Etherscan

This wasn’t an isolated event either. Data reveals another withdrawal of 322.48 billion PEPE tokens, worth around $2.7 million, from the same shadowy address just a day prior.

The timing of these large transactions is most puzzling. They coincided with an unexpected 17% increase in PEPE’s price, which caused the bitcoin community to speculate and experience FUD—that is, anxiety.

Theories range from market manipulation tactics to the possibility of unforeseen regulatory crackdowns, causing jitters among investors.

Total crypto market cap currently at $2.2 trillion. Chart: TradingView

Community Sentiment: Bullish Despite The Wobble

Fascinatingly, CoinGecko data shows the PEPE community stays mostly optimistic in spite of the price decline and surrounding uncertainty. The flood of 703 fresh PEPE holders in the past day supports this constant hope even more.

PEPE price action in the last 24 hours. Source: CoinMarketCap

Prominent bitcoin personalities such as analyst David Gokhshtein, who believes PEPE will remain the main competitor of Dogecoin in the upcoming bull market expected later this year, are fueling the optimistic fires.

I think you’ll see a crazy battle between $PEPE & $DOGE this meme season.

— David Gokhshtein (@davidgokhshtein) May 6, 2024

Investing In PEPE: Proceed With Caution

The recent price decline and the mystery about the big token withdrawals attract attention to the underlying instability of the cryptocurrency market as the community attitude moves toward optimism and some analysts see great development possibility.

Featured image from KnowYourMeme, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.