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Title: PEPE causes panic as market cap plunges by $7B: How far is recovery?
As the crypto market continues to grapple with uncertainty and volatility, Pepe’s [PEPE] market capitalization has plummeted by a staggering $7 billion. This drastic decline in valuation has sent shockwaves throughout the community, leaving investors scrambling for answers.
At the time of writing, PEPE trades at $0.00001274, down 1.07% on the day as it struggles to hold onto key support levels. The recent bearish performance is largely attributed to a major whale’s decision to sell its entire position of 552.92 billion PEPE for approximately $6.92 million USD Coin [USDC].
It is essential to note that this whale’s large liquidation event has not only added to the already heightened market uncertainty but also amplified the existing bearish sentiment. This development could potentially lead to further price erosion, as it is often a catalyst for increased selling pressure.
Despite these ominous signs, some market enthusiasts argue that PEPE may be primed for a short-term recovery due to its oversold condition on the RSI chart. This sentiment is fueled by the fact that large transactions have been increasing in value by 2.50%, indicating institutional involvement and continued activity despite the current downturn.
However, MVRV long/short difference, which has recently fallen to an abysmal 10.45%, suggests that traders are unwilling to hold PEPE for extended periods, ultimately leading to further short-term selling risks. This stark drop in profitability may result in additional liquidation events, should market participants continue to lose faith.
In light of this information, it becomes increasingly challenging to predict a recovery timeline or magnitude with any degree of accuracy. Nonetheless, the current bearish landscape does offer some glimmer of hope for bulls, as RSI levels do hint at the possibility of a short-term relief rally if buyers can successfully defend current price levels.
If this bullish trend materializes, PEPE may have the potential to stabilize and eventually rebound. However, should bears continue their winning streak and break key support zones, it is crucial to recognize that further downside movements are likely before any significant upward momentum can be expected.
As such, investors must remain vigilant and stay informed about market developments in order to make well-informed decisions amidst this sea of uncertainty.
Source: ambcrypto.com
