Cryptocurrencies have seen sharp ups and downs, especially meme coins like PEPE that have gained immense popularity in a short time. However, this coin has suffered a sharp decline in its price, which has left investors wondering: Why is PEPE still stuck at its low levels? In this article, we will discuss the main reasons behind this continuous decline.

1. Pump and Dump Operations

Meme coins are prone to “pump and dump” operations, where large investors (whales) pump up the price of the coin through promotional campaigns, then sell huge amounts to make a quick profit, causing the price to drop sharply. PEPE appears to have been subject to this phenomenon, which has negatively affected its stability.

2. The influence of large investors (whales)

PEPE experienced massive selling by large investors, causing strong selling pressure that caused the price to fall. For example, in a short period of time, a whale sold hundreds of billions of PEPE units for millions of dollars, increasing the supply in the market and causing its market value to fall.

3. Lack of real use cases

Compared to major cryptocurrencies like Bitcoin and Ethereum, PEPE does not have strong use cases or technology to support its long-term value. Most of its value is based on speculation and market trends, making it more vulnerable to sharp fluctuations and constant declines.

4. Loss of investor confidence

As PEPE continued to decline, many investors began to lose confidence in its future prospects. This decline in sentiment led to further selling, making it more difficult for the price to recover.

5. General market impact

The cryptocurrency market is affected by the general state of the economy and regulatory changes. During periods of general decline, meme coins tend to decline more sharply than major coins, due to the lack of strong support from real projects or innovative technology.

Conclusion

PEPE is facing multiple challenges, such as heavy sell-offs by whales, lack of real-world use cases, and loss of investor confidence, which have left it stuck at low price levels. If these factors continue to weigh on it, it may be difficult for it to regain its upward momentum without drastic changes in the market.

Advice for investors

If you are considering investing in PEPE or any other meme coin, it is important to do thorough research, and not rely solely on emotional expectations or media hype. Crypto markets are highly volatile, so caution and careful planning should be exercised before making any investment decisions.