What Beercoin, the Solana-based meme coin that used to mean funds freedom, stands for has changed a great deal. Early this month, the value of Beercoin went up a lot. But in just a few days, it has dropped by almost 70%. Because the market moves and people trade on inside information.
The all-around coin market has gone down since the Federal Reserve switched to a “hawkish” monetary policy, which focuses on keeping inflation in check instead of growing the economy. This week, Bitcoin fell below $66,000, which is a very important sign for the market. This made most altcoins fall, even Beercoin. When this happens, speculative assets like meme coins are at the most risk, and they often lose the most value first when people start to be careful about the market.
Beercoin, Insider Selling Raises Red Flags
The drop in the value of beercoin has been made worse by large-scale secret selling. LookOnChain analysis shows that large holders, probably early investors who bought Beercoin at lower prices during pre-sales, have been selling off major amounts of their holdings. Insiders selling off their coins shows a lack of faith in the coin’s future, which should be a red flag for regular buyers who may have thought Beercoin was a good investment.
Technical research adds to the bad news about Beercoin. The token has broken through important support levels and is now trading below important moving averages, which suggests that the downward trend may continue.
Even with these problems, a price estimate for BEER is still positive. It says the price will rise 220% to $0.0₁5119 by July 18, 2024. But right now, technical signs show that investors should be careful because the mood is bearish.
The market is very greedy since the Fear & Greed Index is at 74. This could mean that people who are optimistic are based on thrills rather than facts.
There have been 30 days in a row where the price of Beercoin has not changed at all. This is a strange trend. The market might be being hacked or there isn’t enough funds in the market. It’s strange that this steady rise hasn’t stopped, and it should be looked into more.
People who own Beercoin need to think about the risks that have been brought to light by recent market actions and insider activities. They need to weigh the chances of a comeback against these risks.
