In the past 24 hours, the price of Pepe (PEPE) has been in a bear zone that failed to break past the resistance level at $0.00001086. Following that, bears pushed the PEPE price to a new intraday low level of $0.000009667 before finding support. At the time of writing, PEPE was trading around $0.000009653, a decrease of about 11.15% from its intraday high.
PEPE/USD 24-hour price chart (source: CoinMarketCap)
For instance, during that bearish correction, the market capitalization of PEPE shed 11% to $4,057,937,692, while the 24-hour trading volume surged by 59% to $896,260,464. This volume increase would mean market traders are taking advantage of the dip to accumulate more PEPE in anticipation of a price rebound.
Bearish Trends and Support Levels
Pepe’s price has proven to be quite volatile over the weeks and reflects the more significant market trend. Consequently, the failure to sustain above the $0.00001086 resistance level has attracted a lot of selling pressure to the meme coin.
In this respect, dropping off 11% points from market capitalization indicates that confidence is lacking among short-term investors following the falling broader cryptocurrency market.
Notwithstanding, PEPE enjoys tremendous support around the $0.000009667 price level. This is a critical support level since it may prevent further drops in the short run. Should the price somehow remain above this support level, it could be taken as an indication of a consolidation period before the new test of higher resistances.
Increased Trading Volume and Market Sentiment
A 24-hour trading volume increase of 59% to $896,260,464 suggests heightened trader activity. It usually denotes a scenario where market participants are engaged in purchasing the dip and are optimistic about a rebound. Such trading activity may result in price recovery, as such a volume rise is mainly due to accumulation rather than panic selling.
However, it is crucial to monitor whether such an increased volume would be sustained during the following trading sessions. The high trading volume over time could, therefore, be representative of excellent levels of interest and support from the trading community, maybe stabilizing or turning around from the bearish trend.
Whale Activity and Market Influence
The PEPE market has evidenced significant whale activity, which seems to be impacting the price dynamics of the coin. For instance, a significant whale named dimethyltryptamine. eth liquidates 10 billion PEPE tokens at the cost of $112,000 for 32.73 ETH. This somehow underlines the effects that big holders can hold on market sentiments and price movements.
After over 10 months of inactivity with $PEPE, dimethyltryptamine.eth returned to sell 10B $PEPE ($112K) for 32.73 $ETH ~5hrs ago.
Notably, dimethyltryptamine.eth was an early $PEPE buyer who turned $45K into $26.7M (+58.6K%).
Currently, the whale holds 1.99T $PEPE ($21.9M).… pic.twitter.com/dlTwu3Q4u9
— Spot On Chain (@spotonchain) July 3, 2024
As much as such an event with a significant whale’s sell-off seems like a bearish signal, it is very accurate in this case since the same whale still holds a big share of PEPE. The holding of significant amounts of PEPE tokens by whales underlined that they continued to be confident about the long-term potential of the token.
This selling and holding in parallel often indicates a strategic approach by big investors to book profits while still maintaining their assets for prospects. Technical Indicators note that PEPE’s RSI has reached a level below 25, indicating that it is generally an oversold security.
Historical overbought RSI values had previously accompanied a price increase as traders tried to acquire the stock at lower prices. Additionally, PEPE’s 30-day moving average is falling further below its 200-day moving average, indicating a bearish trend. However, this gap could also imply a potential for a correction upwards if market conditions improve.
In addition, the $0.000009667 level acts as an important threshold of support. At the point above, this support, and with trading volume remaining high, the momentum may change for the potential of a recovery. According to analyst Plazma, this recovery may push PEPE to a new all-time high if it recovers to its projected price of $0.00001720.
