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Despite regaining much of its losses, there are reasons to believe that the coast is not yet clear for PEPE.
The new meme token PEPE coin recently enjoyed a spell of fortune after its price surged by more than 2000% shortly after launching a few weeks ago. However, it appears that it has now lost momentum and risks losing large portions of those earlier gains.
On Wednesday, PEPE entered a sharp correction that saw it lose over 35% of its record high value of $0.00000138, which it attained on May 1. The loss immediately impacted PEPE’s market capitalization by a negative $80 million. It was also enough to push the coin out of the top 100 cryptocurrencies.
However, as of publication, the coin has regained its Wednesday losses. Now it is up 73% in the last 24 hours. According to CoinMarketCap data, PEPE currently trades at $0.000001608.
PEPE Coin May Still Lose More Value in May
Despite regaining much of its losses, there are reasons to believe that the coast is not yet clear for PEPE. At least, not for May, where it risks losing at least 20% of its present value.
To put the above statement into perspective, some indicators suggest a further slip in PEPE price. Firstly, there is the issue of dwindling interests. Google Trends show that searches for the keyword “Pepe Coin” has gone from 100 to 7 in just a day. This further proves that the dust is settling and the entire buzz around the coin might just be fading away. More so, daily trading volumes have also dropped across both centralized and decentralized exchanges even as prices fell.
Another thing that could be factored in as grounds for further downward movement in the coin price is the fear of potential price manipulation. As revealed by data tracker CoinCarp, PEPE has a questionable whale distribution. This is because 45% of the token presently in circulation is being controlled by the top 100 richest PEPE addresses — PEPE Whales.
But while these addresses may belong to 100 different individuals, it is also possible that an individual controls more than one. Therefore, a few sets of people, or whales, in this case, may manipulate PEPE price trends to their favor as time goes on. The revelation of CoinCarp, thus makes room for skepticism and expectations that the PEPE price will further slip in the month.
Too Early to Predict?
It should however be noted that the PEPE token is only a few weeks into the market. As such, it doesn’t have enough price history to forecast price movements.
Nonetheless, Dogecoin (DOGE) has shown that meme coins such as PEPE can be very unpredictable. They could make major price moves over time and should never be written off. For instance, DOGE, on its part has gained over 7000% since 2020 when Elon Musk lent his voice to it.