PEPE Coin Price Rises 214% To New ATH, But Bearish Risks Remain
Key Takeaways:
Pepe coin enjoyed a massive rally that helped it form a new ATH on April 30.
However, liquidity issues could spell doom for the meme project.
NEW DELHI (CoinChapter.com) — Pepe launched the meme coin frenzy in April that attracted several traders to the market, hoping to make quick profits.
The hype-fuelled rally fizzled out soon, as PEPE price crabbed after reaching a high of $0.0000003913 on April 20. However, the meme token rallied during the last weekend of the month, gaining more than 214% from April 28’s low of $0.000000259.
The uptrend helped the meme coin price establish a new all-time high of $0.0000008128 before retreating. Moreover, the new ATH marks an increase of more than 13,960% in PEPE token prices since its launch in April.
Meanwhile, the 24-hour trading volume for PEPE coin rose more than 250% to reach $247.9 million.
As a result of the recent rally, several traders who bought the token early now have millions of dollars in unrealized profits. However, bearish risks for the meme token arise from its liquidity issues.
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The token has a total value locked (TVL) of $3.78 million on Uniswap. Traders have been shilling the token across social media platforms. However, should major whales start selling, the project might be hard-pressed to find sufficient liquidity to fulfill the demands.
Whales Might Sink The Pepe Coin Ship
The largest PEPE token whale wallet holds nearly $2.8 million worth of the Pepe meme token. As the price surged on April 30, the wallet added another 534,305 PEPE tokens to its wallet. Furthermore, the top 10 PEPE coin wallets account for over 7% of the project’s total token supply.
On-chain analyst Lookonchain highlighted another whale transaction by wallet (0x681ada67950d96dcc9f2951d32353663ed6e59c9) on April 30. The whale wallet bought 1.23T tokens, bringing the wallet’s total to nearly 1.299 trillion PEPE tokens.
If the whale wallets decide to unload their token holdings, the project would face a bank-run-like situation. The team behind the project would be left without any liquidity to fulfill the orders.
Another wallet had bought 8.87 trillion tokens of the memecoin project. However, the wallet later sold 7.76 trillion tokens for $1.23 million, netting a healthy 3,200x profit along the way.
Several traders have unrealized profits locked in the Pepe system, and profit booking might result in the death of the tokens.
The post PEPE Coin Price Rises 214% To New ATH, But Bearish Risks Remain appeared first on CoinChapter.
Filed under: Bitcoin - @ April 30, 2023 10:52 pm