- Pepe, Sui, and Floki Inu prices have crashed hard in the past 2 days.
- These tokens have nosedived as they enter their distribution phase.
Pepe, SUI, and Floki Inu prices were among the worst performers in the crypto industry on Monday. Pepe, the popular new meme coin, has plunged by 30% in the past 24 hours. Similarly, Sui and Floki Inu have all fallen by more than 10% in the same period. Sadly, this could be the start of a new bearish trend, as I warned in this article.
Why Pepe, Sui, and Floki Inu jumped last week
Meme coins made headlines last week as momentum in the industry jumped. This momentum coincided in a period when American banks were under intense pressure. As you recall, First Republic Bank collapsed last week and was taken over by JP Morgan, the biggest bank in the country. As it collapsed, other banks like Western Alliance, PacWest, and Comerica came at risk of collapse.
The situation has changed in the past few days as their stocks have surged. For example, PacWest stock price has jumped by over 10% on Monday after it jumped by 80% on Friday. Still, there are concerns that these moves are parts of a dead cat bounce, which happens when assets jump briefly and then resume the bearish trend.
Pepe and Floki Inu prices also jumped sharply last week because of the Federal Reserve. In its statement, the Fed decided to hike interest rates by 0.25% to 5.25%. While such a move is often seen as a bearish sign, these tokens jumped because analysts believe that the Fed has reached the end of its hiking cycle. Historically, cryptocurrencies tend to rise when the Fed turns hawkish.
Why Pepe, Floki Inu, Sui prices are falling
There are three main reasons why Sui, Pepe, and Floki Inu are crashing. First, the two tokens jumped last week because of the hype surrounding their key events. Sui’s mainnet was launched last week while Floki and Pepe were listed in Binance last week. In most periods, tokens tend to do well when there are major events.
Second, historically, cryptocurrencies like Sui and Pepe tend to decline sharply after going parabolic. This is the same thing that happened to other meme coins like Shiba Inu, Dogelon Mars, and Bonk.
Read more: How to buy Shiba Inu.
Finally, these tokens are crashing as they move into a distribution phase as insiders start exiting their positions. In most periods, insiders tend to crash as insiders and earlier adopters sell their tokens. Data by Etherscan shows that the number of Pepe holders has dropped by 0.5% to 107k in the past 24 hours
Contributors
