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Meme coins like Pepe and Shiba Inu are on the rise. In this post, we will go from digital currency to the price analysis of meme coins. What is going on in the market? Why are Pepe and Shiba Inu increasing?
Both assets are currently performing strongly, but investors should be very cautious.
Recently, coins like Pepe and Shiba Inu have shown a sharp increase in value with PEPE increasing by over 20% and SHIB also gaining around 10% in value.
An examination of the PEPE price chart shows a rapid rise followed by a sharp decline, which is an example of a pump and dump scenario. A significant deposit of 794 billion PEPE worth about $1.1 million was made on the Gate.io exchange at a price increase. This move resulted in a profit of approximately $230,000 for the depositor before the price retreated from its peak, a classic example of how large transactions can affect the valuation of memecoin.
Shiba Inu, on the other hand, is riding a wave of broader market improvement. Its chart shows a steady climb in an upward channel, which shows more sustained buying interest compared to the PEPE. However, the nature of SHIB’s movements is less erratic than PEPE’s, but still has the pronounced swings of a coin mime.
For investors looking to enter the memecoin market, there are three critical factors to consider:
Volatility: Mime coins are highly volatile. The recent price movements of PEPE and SHIB highlight the rapid gains and losses that can occur in very short time frames. While high volatility can mean high returns, it also carries the risk of sudden price drops, especially for PEPE.
Market Manipulation: Large holders or “whales” can significantly influence the price of meme coins. As seen with PEPE, a large deposit or withdrawal can lead to significant price fluctuations. Investors should be alert to the possibility of market manipulation and trade with caution.
Lack of fundamental value: Unlike mainstream digital currencies that have wider usage and adoption, memecoins often lack a strong fundamental value. Their prices are usually driven by community sentiment and social media hype.
