Pepe coin (PEPE) is facing a bearish trend, with its price dropping 2% in the last 24 hours and a significant 13% in the past week, now trading at $0.00001027. This decline is supported by a surge in trading volume, which has increased by 62% to reach $1 billion, indicating heightened market activity and potential volatility.
The current bearish trend can be attributed to the recent rejection from the $0.000013 resistance zone and significant whale activity, including a large transfer of 400 million PEPE tokens to Binance, likely for selling purposes. This inflow to exchanges typically signals selling pressure, further contributing to the downward momentum of PEPE’s price.
Technical indicators also reflect a bearish outlook for PEPE. The Relative Strength Index (RSI) stands at 41.32, indicating that the asset is approaching oversold territory, suggesting that while the bearish trend might continue, there could be potential for a short-term rebound. The Moving Average Convergence Divergence (MACD) line has crossed below the signal line, with red histogram bars reinforcing the bearish sentiment.
PEPE Faces Bearish Pressure Below $0.0000119
Additionally, PEPE has broken below the $0.00001196 previous support level, setting its sights on the next critical support zone around $0.000009994. Despite these bearish indicators, there is a glimmer of hope for a bullish reversal if the price can reclaim the $0.00001196 level and sustain momentum above this point. However, traders should remain cautious, as any failure to hold support could lead to further declines.
There has been a significant change in the overall meme coin space with the hype, which was pushing forward many meme cryptos earlier gradually fading. Most popular meme coins like PEPE have underperformed most of their lesser-known counterparts for the last 30 days based on data provided by IntoTheBlock indicating that only a select few less-known meme tokens are gaining value. This is a testament to the challenge of sustaining momentum among these digital assets amidst changing market conditions and investor attitudes.
Short-Term Holders’ Growth Affects PEPE Market
In particular, the PEPE coin has seen more people hold on for the short term which is usually below one month. From IntoTheBlock’s Balance by Time Held metric, the quick buy-and-sell traders have grown their wallet balances by over 31% within just one month. These increased activities in short-term trading raise market volatility thereby complicating attempts at maintaining an uninterrupted uptrend in PEPE’s price.
Such growing numbers of short-term speculators including some “cruisers” – who own coins for one to twelve months – make PEPE’s daily movements way more erratic than before. After rising approximately 42% from its two-month low since July 5th, it still seems difficult for PEPE to consolidate its upward trend well enough to close comfortably above this psychological level, hovering around $0.00001055.
