Beercoin, the widely known Solana meme coin, has seen a significant decline in the past few days. After reaching a peak of $0.00057 earlier this month, it has dropped by over 68% to trade at $0.00018. This sharp decline has reduced its market cap to just over $100 million, down from a peak of $282 million.

The downturn in Beercoin’s value aligns with the broader downtrend in the crypto industry. For instance, Bitcoin traded below $66,000 on Monday, while most altcoins saw declines of over 10% in the past 24 hours.

A likely reason for this sell-off is the recent Federal Reserve decision, which indicated only one rate cut this year. Many analysts believe the Fed may not cut rates at all this year due to persistent high inflation. Cryptocurrencies, especially meme coins like Beercoin, tend to underperform when the Fed takes a hawkish stance.

Another contributing factor to Beercoin’s plunge is significant selling by major holders or “whales.” Data shows that an insider sold over 5.4 billion tokens on Sunday. Another wallet, linked to the Beercoin team, sold 5.43 billion $BEER for $1.13 million. This wallet had received $BEER directly from the Beercoin team wallet.

Insider sales are a significant red flag in the investment world, as these individuals have more insight about their entities.

The insider was not alone; another insider sold 5 billion tokens worth $1.08 million on the same day. Additionally, a pre-sale participant sold the $BEER token for a profit of $1.3 million on the previous Friday. Despite these sales, the official X account continued to promote the token.

In my earlier forecast, I maintained a neutral outlook for the BEER coin and warned that it could drop as holders started taking profits. This prediction has been accurate, as the token has plunged by over 50% since then. On the three-hour chart, Beercoin peaked at $0.00056 last week and then fell amid significant insider sales.

The coin has dropped below the key support level of $0.00033, its lowest swing on June 6th. Additionally, it has remained below the 25-period and 50-period moving averages, finding strong support at $0.000015.

As a result, the Beercoin price is likely to experience a bearish breakout as sellers target the key support level of $0.000080, its lowest swing on June 13th.

For more updates and news on the cryptocurrency market, explore more on Global Crypto News.

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