Solana
Solana’s BEERCOIN plunges 70%: Whale manipulation at stake?
- The value of BEERCOIN has decreased by 70% over the last seven days.
- The memecoin has shown signs of recovery.
Solana [SOL] Memecoions have been creating a lot of buzz lately, and BEERCOIN [BEER] is one of them.
The memecoin saw a significant price drop, which seemed normal given the overall bearish market situation. However, the story was more complex as the memecoin price gained bullish momentum over the past 24 hours.
Solana BEER faces a challenge
The past week was disastrous for BEER investors as the memecoin price fell 70% to $0.00014 on June 13.
SolanaFloor, a popular X ID that posts updates related to the blockchain ecosystem, recently released a Tweeter emphasizing that the drop in the price of BEERCOIN was not just a simple repercussion of the market situation.
Rather, it is a whale that sold BEER for more than 10 million dollars. This created panic among investors as the overall selling pressure began to increase, causing the price of BEERCOIN to drop substantially.
Lookonchain, however, highlighted another BEER-related development through a Tweeter.
According to the tweet, the whale that sold BEER to lower its price started hoarding BEER once its price bottomed out. Such price manipulations often occur with tokens with small market capitalizations.
However, things began to improve for the Solana-based memecoin as its price began to recover.
According to CoinMarketCap, BEER was still down 11% in the last 24 hours. At the time of writing, BEER was trading at $0.0003004 with a market cap of over $165 million.
Since the price drop, the trading volume of memecoin has also increased, which can serve as a basis for its recovery.
Source: Santiment
AMBCrypto’s analysis of BEER’s hourly chart revealed that its price was in a less volatile zone, suggesting that the chances of a massive price drop were low.
Additionally, its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) recorded increases, which could help BEER recover from the recent loss.
Source: TradingView
Solana map remains red
Like BEER, Solana also faced challenges as its stock price fell more than 2% in the last 24 hours. At the time of writing, SOL was trading at $148.21 with a market cap of over $68 billion.
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It was interesting to note that despite the price decline, SOL’s weighted sentiment increased. This means that bullish sentiment around the token has increased in the market.
Additionally, its social volume also remained high throughout the past week, reflecting its popularity.
Source: Santiment
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