Pepecoin (PEPE) has been grappling with a prolonged correction trend, finding itself caught in the midst of heightened selling pressure prevailing throughout the cryptocurrency market.
As the downtrend persists, new lower lows and lower highs have solidified the notion of an established downward trajectory for this peculiar meme coin. In the latest turn of events, the price of PEPE recently breached yet another local support level, dropping below $0.00000096.
With this significant breach, an ominous question arises: Is the frog-themed token headed for further downfall or could there be a potential reversal in store for this once-popular coin.
Social volume refers to the measurement of search volume associated with an asset. Therefore, the recent decrease in social volume suggests that the fervent pursuit of this meme-based coin has diminished.
PEPE Social Volume. Source: Sentiment
Declining Network Growth Raises Concerns For PEPE
PEPEs potential for another price hike is further challenged as on-chain data reveals a decline in network growth. Traditionally, network growth serves as a metric to monitor the number of new addresses adopting a token.
As of June 10, the network growth indicator was recorded at 287, signaling a notable decrease. This decline suggests that PEPEs previous effective strategy for gaining popularity has lost its effectiveness.
The recent development in the PEPE market reveals a rather modest increase in the number of holders, with approximately 7,000 new individuals joining the ranks. Although this figure may seem relatively small in the grand scheme of things, it does provide a glimmer of positivity for the short-term price outlook of PEPE.
Crypto total market cap is currently at $1.01 trillion on the daily chart at TradingView.com
The addition of these new holders suggests that there is a certain level of interest or confidence in the market, which could be influenced by various factors such as positive news developments or favorable market sentiment.
However, its important to note that the impact of these new holders on the price of PEPE may not be substantial on its own, as other market dynamics and external factors will also come into play.
Uncertain Outlook For PEPE Amidst Challenging Market Conditions
Looking ahead, Pepecoin faces an uphill battle to revitalize its fortunes. The figures below show that the coin has been soaked in red since last month, a sign that more pain could be on the horizon.
Source: Coingecko
Meanwhile, with limited growth in the number of holders and minimal positive expectations for the short-term price, PEPE must navigate the challenging landscape of the crypto market.
It will require innovative strategies and unique value propositions to regain investor confidence and attract new participants.