Pepe, the world’s 3rd-most valuable meme coin, has been falling in recent days in a dramatic downturn for the token. It’s now down 17% in the past week and 42% over the past month, with no end to the slide in sight.
Part of the reason for the decline may be that Pepe investors are moving from $PEPE into a new Pepe-themed meme coin, $PEPU. We’ll take a look at both tokens and see what’s behind the shift in value.
Pepe Slides Further Than Other Meme Coins, Further 30% Drop Possible
While it’s been a tough month for the meme coin market overall, few tokens have fallen as quickly or as far as $PEPE.
For comparison, $DOGE is down only 21% in the past month of trading. $BRETT, inspired by the same graphic novel as $PEPE, is down 40%.
There are multiple overlapping reasons behind Pepe’s slide, including fears over a looming global recession, a broader pullback in crypto prices impacting meme coin trading, and competition from newer meme coins.
It also appears that $PEPE is lacking technical support, sending the token in a nosedive that could see it fall even further.
Technical analysis indicates that $PEPE is currently trading just below a support band around $0.0000078. A breakdown from this level could send the token down to its next support at $0.0000048, a more than 30% loss.
Other analysts have offered an even more bearish view of $PEPE, suggesting the token won’t reach support until it falls to $0.0000030. That indicates a potential correction of 60% or more from the token’s recent price level.
Trading volume remains low in $PEPE, a possible indication that traders are undecided about where the token will head next. Without a positive catalyst, however, it appears likely that $PEPE could suffer a serious decline.
Traders Shift to $PEPU, Layer-2 Chain Built for Meme Coins
One of the new meme coins putting a lot of downward pressure on $PEPE is $PEPU, another Pepe-themed meme token with a lot more utility to offer.
$PEPU is the native token of Pepe Unchained, an Ethereum Layer-2 blockchain built specifically for meme coins. Pepe Unchained aims to become the dominant network for new meme coin launches and trading, edging out Solana and its killer dApp, Pump.fun.
Unlike $PEPE, Pepe Unchained offers native staking rewards for $PEPE—a big draw for traders deciding what to do with their money while the meme coin market slides. During the ongoing Pepe Unchained presale, early investors in $PEPU can earn a whopping 218% APY on their tokens.
Then there’s the upside potential of $PEPU. According to crypto analysts like ClayBro, Pepe Unchained could rocket 100x or more after it hits exchanges. Even the best-case scenario for $PEPE—a return to its all-time high—would deliver traders only a 60% return.
Many traders are deciding that if they’re going to take a risk, they’d rather shoot for the moon with $PEPU than settle for small gains with $PEPE.
The Pepe Unchained presale has already raised more than $9 million, but traders can still lock in tokens at a discounted price of $0.0091265.
$PEPU is expected to list on decentralized and centralized exchanges at the end of the presale, kicking off explosive trading that could see new crypto millionaires minted.
