Beercoin (BEER) Faces Sharp Selloff From Its ATH: What’s Next?

• 1 The BEER price has revealed a sharp reversal in the last trading session.
• 2 The ongoing trend is neutral, and the coin witnessed distribution this week.

Beercoin entered into the cryptocurrency market in May 2024 as a meme token running on the Solana blockchain. It is designed to bring people together through the universal love of beer. 

Since its launch, the BEER price has been in a consistent uptrend, and it recorded its All-Time-High mark of $0.0005798 last week. However, the buyers have failed to hold the gains in the sky and faced sharp distribution from the highs.

Interestingly, a long rejection wick was noted from its demand zone of $0.0000900, and buyers showed their interest and started accumulating again. The chart structure signifies that if BEER crypto retains the $0.0004000 mark, it will outperform.

At press time, the Beercoin price traded at $0.0003003 with an intraday surge of 1.36%, reflecting neutrality on the charts. It has a weekly return ratio of -33.20% and 263.40% monthly, reflecting a long-term bullish structure.

The pair of BEER/BTC is at 0.00000000440 BTC, and the market cap is $161.92 Million. Analysts are bullish and suggest that the BEER price may continue to lift higher and might outperform ahead.

Could BEER Retain Its ATH Mark This Month?

The Beercoin daily charts signify three black crow formations, and a noteworthy selloff happened this week. Amidst the consistent upmove, some of its holders have booked their profit and might enter into the dips in the last session.

Nonetheless, the willingness and demand for BEER are still at their peak, which signifies that a long-term bull run is intact.

Undoubtedly, the trading volume remained strong, which signifies investor speculation. Its volume spiked over 19.25% to $254.18 Million in the past 24 hours.

The RSI curve sails in the overbought zone, but a negative crossover was witnessed, which implies the profit booking in the last sessions.

Likewise, the MACD indicator directs a bearish crossover, forming red bars on the histogram.

Source: TradingView

The ongoing price structure signifies a buy-on-dips and sell-on-high strategy that has directed massive price volatility in past trading sessions, and retail investors may have the FOMO right now.

Per the tweet from @SolanaFloor, “@lookonchain advises being careful when trading Solana Memecoin $BEER (@beercoinmeme) as a whale drives the price down by selling big, causing panic sales, then buys cheap and sells high.”

Source: X

Additionally, @WuBlockchain, in his tweet, mentioned, “According to on-chain analyst Wazz, a few days after Bybit launched the Solana Memecoin BEER perpetual contract, BEER fell 80% at one point, and insiders/teams may have cashed out more than $15 million. Insiders/teams may control over 50% of the supply and use Bybit perpetual to manipulate prices.”

Source: X

The on-chain metrics signify further volatility ahead, and the memecoin might hover near its value region at around the $0.0003000 mark ahead.

The technical indicators guide mixed cues; the Stochastic RSI guides a neutral outlook, while the EMAs and SMAs guide a sell outlook.

The immediate support levels for the BEER memecoin are $0.0002760 and $0.0002450, whereas the key upside hurdle is around $0.0003500, followed by $0.0003800.

Conclusion

The BEER meme coin price slipped below the 20-day and 50 EMA marks and is hovering close to its 100-day EMA mark support zone, revealing a slight selling pressure in the last trading sessions. 

Amidst the sharp bull run, its investors have booked their profit due to FOMO and have entered into the dip, which might revert BEER’s price toward its highs again.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.