Pepe (PEPE) Might Face More Volatility Due to This Social Trend
In the fast-paced world of cryptocurrencies, wild price swings have become the norm. But brace yourself, as Pepe (PEPE), the frog-themed cryptocurrency, might be diving into even choppier waters. A recent social trend has surged its discussions, and this could potentially set off a rollercoaster ride for this digital coin. Let's dive into the details and understand why Pepe might be facing more volatility in the days to come.
The Reputation Setback
Pepe's journey has been anything but smooth sailing. A significant blow to its reputation struck when allegations arose against former team members. These members were accused of siphoning funds from the project wallet. This incident cast a lingering shadow on Pepe's credibility and integrity, leaving both investors and enthusiasts questioning its path ahead.
The Santiment Revelation
Enter Santiment, the on-chain analytics firm renowned for its keen insights into the cryptocurrency market. Recently, Santiment set its spotlight on the growing concerns revolving around Pepe. In a tweet that caught the eye, Santiment pointed out that Pepecoin had skyrocketed to become the hottest crypto topic over a single weekend. The spark for this surge in discussions ignited from news that the developers had shifted a whopping 16 trillion PEPE tokens onto various exchanges for sale.
🐸 If you are riding the wave of #memecoins during these uncertain market conditions, #Pepecoin has quickly become the top trending #crypto topic this weekend. Former team members are accused of removing $16M. Expect even more high volatility than usual. https://t.co/iQLD7h224s pic.twitter.com/UOR4sTcWwv
— Santiment (@santimentfeed) August 27, 2023
Given this intriguing twist, Santiment sounded a warning bell. It cautioned that the cryptocurrency landscape might be in for an even wilder ride than usual. With market conditions hanging in uncertainty, the heightened attention focused on Pepecoin, coupled with the alleged theft by ex-team members, could lead to dramatic price fluctuations. In simpler terms, trading Pepecoin might become quite the daring endeavor due to this escalated volatility.
"If you're riding the memecoin wave during these uncertain market times, watch out, because Pepecoin has just taken the top spot as the trendiest crypto topic this weekend. With former team members allegedly making off with $16 million, expect volatility to reach new highs," Santiment's tweet sounded the alarm.
The Token Sale Controversy
Remember that massive token sale revelation? It dropped via an official statement from the PEPE X account. The statement spilled the beans that three project team members had purportedly swiped an astounding 16 trillion PEPE tokens. To put this in perspective, that made up a staggering 60% of the total 26 trillion multisig tokens in circulation. This grand-scale heist supposedly stemmed from internal conflicts brewing since the project's inception. The tokens that had been stolen subsequently landed on exchanges and were liquidated.
An update from PEPE X followed, reassuring the community that the remaining 10.6 trillion tokens within the PEPE multisig had been shifted to a new address. This strategic move aimed to safeguard the tokens until they either saw some action or were permanently removed from the supply.
Price Action and Future Projections
Let's talk price action. Pepe experienced a steep tumble, with its value plummeting over 20% for three consecutive days from August 24 to 26. However, it managed to regain its footing and find some stability at its current trading level. As of this writing, Pepe showed a slight uptick of 0.51% in the last 24 hours, placing its value at $0.00000089.
Given the recent whirlwind, it's only logical to brace for more price somersaults when it comes to Pepe. One possible scenario is a rebound, often referred to as a "dead cat bounce," in the short term. This speculation finds its roots in the fact that the daily Relative Strength Index (RSI) dropped below levels indicating overselling. If this scenario pans out, Pepe might be aiming for the $0.0000013 level, where it could potentially encounter resistance.
On the flip side, if Pepe goes through a brief recovery followed by another downward spiral, a support point is expected to emerge around $0.00000078. It's paramount to underline that diving into cryptocurrencies is akin to navigating a stormy sea, carrying inherent risks. As such, it's strongly advised that individuals seek counsel from financial professionals before taking any investment leaps.
Conclusion
Amid the ceaseless evolution of the cryptocurrency landscape, Pepe's journey has been riddled with hurdles. The recent allegations against former team members and the ensuing token sale have painted an aura of uncertainty over its future. The surge in social chatter, coupled with the spotlight cast by Santiment, has only heightened apprehensions about potential volatility. As traders and investors navigate these uncharted waters, a prudent approach to Pepe and other cryptocurrencies entails grasping the risks involved with utmost clarity.
