Beercoin, the immensely popular meme coin on the Solana network, has experienced a significant downturn in recent days. After reaching a peak of $0.00057 earlier this month, its value has plummeted by more than 68% to now stand at $0.00018. This sharp decline has caused its market capitalization to drop to just over $100 million, a substantial decrease from its peak of $282 million.
The decline in Beercoin’s token value is consistent with the broader downward trend in the cryptocurrency industry. Bitcoin, for example, dipped below $66,000 on Monday, with most alternative coins also seeing declines of over 10% within the past 24 hours.
A probable factor behind the sell-off is the Federal Reserve’s recent decision, where officials hinted at only one interest rate cut for the year. Many analysts speculate that the Fed may refrain from cutting rates altogether due to persistently high inflation levels. In such a scenario, cryptocurrencies, particularly meme coins like Beercoin, are expected to struggle. Adding to the coin’s woes is the significant selling pressure from some of its major holders. Data from LookOnChain reveals that an insider sold tokens worth more than 5.4 billion on Sunday, with another insider offloading 5 billion tokens valued at $1.08 million on the same day. Additionally, a pre-sale participant sold off $BEER tokens for a profit of $1.3 million on Friday, coinciding with promotional efforts from the official X account.
Insider selling is often viewed as a major warning sign in the investment world, given that these individuals possess intimate knowledge and insights about their respective projects.
Beercoin Price Prediction:
In a previous forecast, I adopted a neutral stance on the future price of BEER coin, cautioning about the possibility of a drop as investors sought to realize their gains. This prediction has proven accurate, as the token has since plunged by more than 50%. Examining the three-hour chart, we observe that Beercoin’s value reached a high of $0.00056 last week before witnessing a sharp decline attributed to significant insider selling.
The token has breached the critical support level at $0.00033, established as the lowest point on June 6th. Furthermore, it has remained below both the 25-period and 50-period moving averages, finding a robust support level at $0.000015.
Consequently, it is probable that Beercoin’s price will experience a bearish breakout, with sellers aiming for the key support level at $0.000080, the lowest point recorded on June 13th.