- The calm in PEPE’s price action may have spelled doom for BTC and the broader market.
- There was no new interaction with the token.
The excitement all around Pepe [PEPE], the meme-based cryptocurrency that emerged just a few weeks ago, has caused concern among some market watchers. Needless to say, the PEPE frenzy has caught the attention of many investors and traders.
To read Pepes [PEPE] price prediction 2023-2024
However, according to a new report, it may not be the best for the broader market Bloomberg report. In its May 14 publication, the data and market media conglomerate noted that the aura surrounding the frog token was screaming pain for the market above all else Bitcoin [BTC].
Keep in mind that the rise of PEPE was accompanied by a significant increase in speculative trading activity and frantic buying. And around the same period, the value of BTC declined and consolidated.
Muted euphoria is not a good reason
But Bloomberg stressed that this type of market behavior is often associated with euphoria and can be a warning sign of a crisis overheated Market.
Typically, when investors rush into an asset driven only by hype and fear of missing out (FOMO), it can result in a speculative bubble that is vulnerable to sharp price corrections.
And since PEPE had no benefit other than community support, a drop in enthusiasm could distort the market.
In part of the report, Joe Rotunda opined that the decline has now impacted investors’ ability to seek opportunities in other assets.
Due to its popularity and speculative nature, PEPE has done so corrected despite its 2.8931% surge over the past 30 days. At press time, the value of the token was $0.0000017. However, the price wasn’t the only part affected by the decline.
No force behind the meme
According to Santiment is the volume that reflects the Strength behind price action had also flattered. At the time of writing, the metric that once rose to 2.91 billion had fallen to 414.24 million.
Source: Santiment
Furthermore, the traction the meme had gained in its incredible rise had waned. This conclusion was based on the information indicated by the network growth.
Network growth describes the number of new addresses that were involved in the transaction of the token for the first time. At press time, the network growth was 1108.
Realistic or not, here it is The market capitalization of PEPE in BTC
In terms of circulation, Santiment showed that the seven-day trend had changed momentum. The circulation of a token refers to the number of unique tokens transferred on a given day.
This metric counts circulation once if tokens change hands five times on a given day. At the time of writing, circulation had fallen to 118.68 trillion.
Source: Santiment
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