The memecoin PEPE is facing a troubling trend as its network activity declines, raising questions about the sustainability of its price despite significant whale accumulation. Recent data highlights a stark contrast between the growing interest from large investors and the diminishing engagement from everyday users, and the document underscores a growing issue that could impact the future of this cryptocurrency.
Decline in Daily Active Addresses
Recent reports show that PEPE's daily active addresses have fallen below 3,000, signaling a notable decrease in user participation. This decline in engagement is particularly concerning given the backdrop of increasing futures open interest and whale accumulation, which typically suggest a bullish sentiment in the market.
Concerns Over Market Sentiment
The disconnect between the accumulation of assets by whales and the dwindling number of active users raises alarms about the potential for significant price corrections in the memecoin sector. Analysts are closely monitoring these trends as a continued drop in network activity could lead to a bearish outlook for PEPE and similar cryptocurrencies.
