Pepecoin (PEPE) is struggling with a continuing correction trend and is amidst heightened selling pressure prevalent throughout the cryptocurrency market.
As the downward trend continues, new lower lows and lower highs have solidified the notion of an established downtrend for this peculiar meme coin. In the recent turn of events, PEPE’s price recently breached another local support level, dropping below $0.00000096.
With this significant breach, a threatening question arises: is the frog token facing another downfall or could there be a potential reversal in the cards for this once-popular token?
Pepecoin Price Takes a Hit as Social Volume Falls
Pepecoin (PEPE) has experienced a substantial price decline, evident within data provided by CoinGecko, which shows a 4.9% decline within the last 24 hours. Additionally, PEPE has seen a notable drop of 25.7% in the last seven days, further underscoring the cryptocurrency’s ongoing downward trend.
Despite PEPE's disappointing price performance, its social volume remained relatively high throughout the previous week. However, as of the writing of this article, this metric has plummeted, marking a trend that began on June 8th.
Social volume is a measure of the amount of search volume associated with an asset, suggesting the recent drop in social volumes indicates the passionate pursuit of this meme-based coin has dwindled.
Declining Network Growth Gives PEPE Reason to Worry
PEPE's potential for further price increase continues to be challenged, as on-chain data shows a decline in network growth. Traditionally, network growth serves as a metric to monitor the number of new addresses adopting a token.
On June 10th, the network growth indicator stood at 287, signifying a significant decline. This drop suggests that PEPE's previous effective strategy to increase popularity has lost its efficacy.
The recent outlook on the PEPE market shows a rather modest increase in the number of holders, with approximately 7,000 new individuals joining. Though this figure may seem relatively minor, it provides a hint of positivity for PEPE's short-term price outlook.
However, it's crucial to note that the impact of these new holders on the PEPE price, on its own, may not be significant, as other market dynamics and external factors play a role.
Uncertain Prospects for PEPE Amid Challenging Market Conditions
Looking ahead, Pepecoin faces a tough battle to revive its asset. The following figures indicate that the coin has plunged into the red since the past month, a sign that more pain may be on the horizon.
Given the limited growth of the number of holders and minimal positive expectations for the short-term price, PEPE must navigate the challenging landscape of the crypto market. Innovative strategies and unique value propositions are required to regain investor confidence and attract new participants.
(The content of this website is not to be taken as investment advice. Investing comes with risks. If you invest, your capital is at risk.)
Featured image: Brian Gray/Aquarium of the Pacific.
