đž PEPEâs Rally Hits a Roadblock as Musk Effect Diminishes
Popular meme coin Pepe (PEPE) experienced a 12% price surge on Tuesday following Elon Muskâs move on X. He changed his display name to âKekius Maximusâ and adopted the Pepe the Frog avatar, referencing the online game Path of Exile.
However, this initial excitement has turned out to be short-lived. As the hype surrounding Muskâs actions begins to subside, PEPE has already started to shed some of its recent gains.
đž #PEPE âs Short-Lived Rally: No Thanks to Elon Musk
On Tuesday, tech billionaire Elon Musk gave his X profile a new makeover, adopting the moniker âKekius Maximus.â Musk replaced his profile picture with the âPepe the Frogâ meme along with the new name, reimagining the character as a warrior clad in armor and wielding a video game joystick.
This move led to a surge in optimism around the PEPE meme coin, which drove its value by 12% during the trading period. However, this initial excitement appears short-lived, as the meme coin has initiated a decline. Over the past 24 hours, its value has decreased by 4%.
During that period, PEPEâs trading volume has rocketed by 31%. When an assetâs price declines while its trading volume surges, it may indicate increased selling pressure as more participants look to exit their positions. It signals that the price growth is driven by mere market speculation and not by actual demand for the asset and, therefore, not sustainable.
Moreover, the surge in PEPEâs spot outflows further reinforces this bearish outlook. According to Coinglass, over the past 24 hours, $6.34 million has been withdrawn from the spot market. This stands in stark contrast to the $45 million in PEPE inflows recorded on Tuesday.
When an asset experiences spot outflows, it means more of the asset is being sold or withdrawn from the market than bought. This signals a decrease in demand as investors or traders are moving their holdings away from the asset.