The PEPE meme coin has declined for a sixth consecutive week amid weak market liquidity and bearish sentiment. Despite the slide, on-chain data from Santiment shows the top 100 wallets have accumulated approximately 23 trillion PEPE tokens over the past four months. Analysts warn that tight liquidity could pressure meme coins further, though some see potential for a short-term rebound.
The PEPE meme coin has extended its weekly losses for a sixth week as of Wednesday. Market analysts attribute the weakness to tighter liquidity conditions and declining retail participation across the altcoin sector.
Last month, trader James Wynn indicated the meme coin’s market capitalization could reach $69 billion by 2026. Two weeks later, he stated he had closed all his positions and sold his entire PEPE holding.
Despite this exit, major investor accumulation has remained strong. Santiment data indicates that during the last four months, the top 100 wallets have amassed approximately 23.02 trillion PEPE tokens.
The firm pointed out that large wallets hold an important position in the altcoin cycle. “Smart money…” Santiment noted, adding that meme coins usually experience a breakout when Bitcoin shows sustained uptrend movement.
According to analyst Defi Priest, the token is likely to experience a short-term rebound due to current market conditions. However, analysts warn investors of the possibility of a new local low considering worsening liquidity.
Popular market analyst Benjamin Cowen pointed out that meme coins experience the greatest pressure when liquidity conditions tighten. He suggested meme coins might not be able to survive if the situation worsens.
CryptoQuant data shows that meme coin dominance in the altcoin sector is still low. The analyst stated that an increase in this metric will be a clear indication of an improved setup for the token and other meme coins.
