- Pepe price has plunged after soaring hard in the past two months.
- The same is true for Sui, a well-funded layer-1 network.
- A dead cat bounce cannot be ruled out in June.
Sui price has been in a strong bearish trend in the past few weeks as the momentum it had in April faded. The token crashed to a record low of $0.9419, which was about 20% below the highest level on record. Similarly, after going parabolic earlier this year, Pepe price plunged to a low of $0.000001, ~93% below the highest level on record.
Demand wanes
Sui and Pepe are two different platforms in the blockchain industry. On the one hand, Pepe is a meme coin that has no utility value. Its goal is to dethrone popular meme coins like Floki Inu and Shiba Inu.
Sui, on the other hand, is a layer 1 network that developers hope will be a good alternative to other chains like Ethereum and Solana. It has several features like faster speeds, low and stable fees, and advanced security features.
Sui was launched after months of development. Unlike Pepe, it is a Silicon Valley product that raised over $336 million from some of the leading investors like Jump Crypto and Coinbase Ventures among others.
The challenge for Sui is that it operates in a highly competitive industry that is difficult to crack. Some of the biggest competitors in the layer-1 industry are Ethereum, Solana, Polkadot, and Cosmos. It is also competing with other layer-2 networks like Arbitrum, Optimism, and Polygon.
After soaring earlier on, the two cryptocurrencies have followed the pattern that I predicted here. In most periods, trending cryptocurrencies tend to rise and then crash as initial buyers take profit. This is evidenced by the sharp decline in daily trading volume.
Data by CoinMarketCap shows that the daily volume for Pepe stands at $154,800, which is much lower than its all-time high of almost a billion. Similarly, the daily volume for Sui has plunged to $105 million from a peak of over $800 million.
Pepe and Sui price prediction
The chart above shows that Sui and Pepe prices have had a close correlation even though they are uniquely different cryptocurrencies. The two have crashed by more than 12% in the past few weeks.
I believe that, unless one of them makes a major announcement in June, their correlation will continue. While I am sceptical about their fundamentals, I still cannot rule out a situation where Sui and Pepe prices rebounds in June as investors buy the dip.
This recovery will also happen if Bitcoin and other cryptocurrencies like Bitcoin and Ethereum rebounds. A key catalyst for all this will be the interest rate decision by the Federal Reserve. A dovish decision will see cryptocurrencies rebound.
However, any comeback should be seen as a dead cat bounce and should be avoided. A dead cat bounce is a situation where a falling asset suddenly jumps for a short time and then resumes the bearish trend.
