Pepe coin has slumped 9.9% in the past 24 hours, fueled by a derisking across the entire crypto market.
However, new emergent Pepe Unchained has not been fazed, rallying 160% from its initial listing price today.
Pepe Plummets After Strength Earlier This Week
Pepe’s unfortunate performance in the past 24 hours took many by surprise, given it had largely outperformed the market recently.
It reached an all-time high (ATH) of $0.00002825 on Monday while other crypto prices were undergoing a downtrend which began on Saturday. But after defying the trend for days, Pepe has finally succumbed to the same bearish momentum.
It’s currently trading at $0.00002287, down 9.9% today, up 9.4% this week, and up 90% this month.
The project holds a $9.5 billion market cap and a $7 billion 24-hour trading volume, down 38% today.
Experts are warning investors to not get “shaken out” by the recent downtrend, reminding them that pullbacks are a healthy part of any market cycle and that Pepe will likely continue to gain in the months ahead.
Funding Rates Reset, Time For Next Bull Rally?
Funding rates measure the premium that traders pay to long or short an asset when trading perpetual futures contracts.
Coinglass data reports that Pepe’s funding rates have been at the highest-ever levels through November and early December, illustrating that traders are heavily long on the asset and paying a high price for it.
Any time that happens, the subsequent result is a funding rate flush, where traders close or take opposing positions since the risk-reward is no longer worthwhile given the expensive fees.
That’s exactly what has happened now, with Pepe’s funding rates returning to a base level of $0.01 as its price falls, indicating traders are closing leveraged long positions.
Again, this is a healthy sign for Pepe’s long-term growth potential with Pepe’s next uptick likely able to climb beyond its ATH without the need for a funding rate flush.
Indeed, it’s the same story across the board. Analyst Daan Crypto Trades notes that Bitcoin and altcoins are in a similar positon.
With funding rates back to a healthy level, Pepe and the wider crypto market could be set for its next leg up.
Yet, even while the market has faced turmoil recently, newly launched Pepe Unchained has rocketed over 160% in the past day, reaching a staggering $190 million market cap.
Daan Crypto Trades told traders to “stick with strength” by investing in projects that perform well in the bearish period. Does that mean Pepe Unchained is the best crypto to buy now?
Trader Suggests Elon Musk Is Involved In Pepe Unchained’s Success
After raising over $73 million during its presale phase, Pepe Unchained has entered the open market with a bang, pumping over 2.5x from its initial listing price.
The token now sits at a $190 million market cap and has logged over $20 million in on-chain trading volume today. That’s around 50% of Pepe’s Uniswap volume.
One trader noticed that Elon Musk had started posting about Pepe just as Pepe Unchained’s presale ended, and the business mogul even sent one tweet seven minutes before the token launch.
Could it be that Pepe Unchained has caught the eye of the world’s richest man?
It wouldn’t be at all surprising. Not only is Pepe Unchained riding the memetic hype wave of Pepe coin, but it is creating a decentralized meme coin ecosystem on Ethereum.
The project is launching an Ethereum layer 2 blockchain with 100x faster speeds and lower fees. It’s perfect for builders who want to test new ideas in a scalable and easy going environment – maybe Musk is considering his next venture?
As Umar Khan from 99Bitcoins explains, Pepe Unchained is trending on CoinMarketCap and could well explode in price.
Traders can buy it via the project’s website, Uniswap, or Best Wallet.
