Pepe (PEPE) is having the latest big trouble, with its whale transaction volume dropping to $48 million. Off highs of $190 million on July 5, this indicates lower interest from big investors. Consequently, the price of Pepe has manifested lower volatility and struggles to hold on to essential support levels.
According to data from Coinglass, for the past 24 hours, liquidation on Pepe went past $1.51 million as buyers liquidated over $1.3 million worth of positions. This has resulted in a bearish mood among investors and suppressed the value of the token.
Market Recovery and Its Effects on Pepe
Despite some other signs in the wider cryptocurrency market about recovery, Pepe remained under bearish trends. With Bitcoin’s price at some trading exchanges continuing to soar above $58,000 and Ethereum remaining the only show in town with prices above $3,100, a similar feat cannot be said for PepeCoin, which continues to trade below key support levels.
There has been an ongoing recovery in the market, with increased interest in the products of Bitcoin and Ethereum ETFs being approved by the SEC anticipated to bring even more investments into the space.
Pepe, which is the second-largest meme coin project on Ethereum, was supposed to capitalize on that uptrend. Unfortunately for the project, on-chain data shows a mass exodus of whale investors from their holdings, most likely in preparation for an extended downturn in price.
Current Price Trends and Technical Indicators
The price of Pepe seems to consolidate within a broad downtrend, ranging between $0.00001 and a psychological support level at $0.0000078. The falling moving averages and the RSI in the negative territory indicate that bears have the advantage.
A sharp decline below $0.00000768 will intensify the grip of the bears, pulling the PEPE/USDT pair to $0.0000041. Alternatively, a break above the strong overhead resistance at $0.00001 may mark the start of a strong relief rally.
At $0.0000136, the 50-day SMA will once again provide resistance, but this could also be breached with ease if there is no change in the uptrend’s strength.
Optimism Amidst the Challenges
Nonetheless, it seems like many crypto traders remain optimistic about Pepe. Twice this month, the token has stayed above the 200-day EMA, showing that bears are not willing to sell below the level. On top of it, Pepe exhibits a falling wedge formation which is among the most beloved by the bulls.
More general market dynamics have played into Pepe’s price action over recent periods, however. The token has rallied two straight days as positivity rippled through the cryptocurrency space after bullish inflation data was published from the US Bureau of Labor Statistics (BLS).
The headline and core Consumer Price Indices (CPI) have come out to be 3.0% and 3.30%, respectively, indicating a Federal Reserve rate cut.
Future Outlook and Investor Sentiment
As of press time, Pepe was trading at $0.000008797 a 1.56% surge in the past 24 hours. In the same day, the market capitalization of PEPE rose to $3.70 billion while the 24-hour trading volume declined by 26.10% to $544.42 million which could be an indication of low traders’ activity.
Some remarks have been made concerning the stability at $0.0000088, which may be maintained in the future, while $0.0000089 levels can act as short-term resistance.
A break-out above this level could be an indication of probable up trend while a break down below the support could be suggestive of a reversal of the trend.
