Memecoins are mass-produced assets with very low values and their names were coined in honor of jokes and viral images on the internet (memes). Its relevance usually happens due to the strength of the narrative created in crypto communities on social networks.
The problem with memecoins, however, is their volatility. Shortly after reaching its peak on Cinco de Mayo, Pepe reversed its upward course and plummeted 70% in the following days.
These dips usually occur when a sell order exceeds the available market depth.
