Cryptocurrencies have seen sharp rises and falls, especially meme coins like 'PEPE' that gained massive popularity in a short time. However, this coin has suffered a sharp decline in its price, prompting investors to wonder: why is PEPE still stuck at its low levels? In this article, we will discuss the main reasons behind this ongoing decline.
1. Pump and Dump schemes
Meme coins are susceptible to 'pump and dump' schemes, where major investors (whales) inflate the price of the coin through promotional campaigns, and then sell large quantities for quick profits, leading to a sharp price drop. It seems that PEPE has been affected by this phenomenon, negatively impacting its stability.
2. Impact of major investors (whales)
PEPE has experienced massive sell-offs by major investors, leading to strong selling pressure that caused the price to drop. For example, in a short period, one whale sold hundreds of billions of PEPE units for millions of dollars, increasing the supply in the market and causing its market value to decline.
3. Lack of actual use cases
Compared to major cryptocurrencies like Bitcoin and Ethereum, PEPE lacks strong use cases or technology that support its long-term value. Most of its value relies on speculation and market trends, making it more susceptible to sharp fluctuations and ongoing downturns.
4. Loss of investor confidence
As PEPE continues to decline, many investors have begun to lose confidence in its future potential. This decline in sentiment has led to further selling, making it more difficult for the price to recover.
5. Impact of the overall market
The cryptocurrency market is influenced by the overall economic condition and regulatory changes. During periods of general decline, meme coins tend to drop more sharply compared to major currencies, due to the lack of strong support from actual projects or innovative technology.
Conclusion
PEPE faces multiple challenges, such as intense selling by whales, lack of actual use cases, and loss of investor confidence, which has left it stuck at low price levels. If these factors continue to affect it, it may be difficult to regain its upward momentum without radical changes in the market.
Advice for investors
If you are considering investing in PEPE or any other meme coin, it is important to conduct thorough research and not rely solely on emotional forecasts or media hype. Digital markets are highly volatile, so caution and good planning should be exercised before making any investment decisions.$PEPE
