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Pepe (PEPE), the meme coin that has captured the imagination of the crypto world, is currently navigating a complex period of consolidation. While the coin’s price action shows promise, trading within a bullish flag on higher timeframes, the momentum shift that traders have been eagerly awaiting has yet to fully materialize. With consolidation expected to continue for another two to three weeks, investors are closely watching the charts for any signs of a breakout.
Slowing Bearish Momentum – A Glimpse of Hope?
On the daily timeframe, Pepe’s bearish momentum has slowed, signaling a potential shift. However, this slowdown hasn’t yet transitioned into bullish momentum, leaving traders in a state of uncertainty. The 4-hour chart provides a more optimistic outlook, with momentum edging closer to a bullish flip. Yet, for this potential to be realized, the On-Balance Volume (OBV) must begin making new highs, indicating strong buying pressure. Until this happens, the market remains in a delicate balance.
Whale Transactions Stir Panic
In recent weeks, Pepe’s on-chain metrics have painted a picture of market hesitation and panic, particularly among whale investors. During the latter half of July, the mean coin age of Pepe was trending upward, suggesting network-wide accumulation. This period also saw a spike in whale transactions, hinting at potential accumulation by larger holders.
However, this narrative took a sharp turn on August 5th, when Pepe experienced a deep price correction. Accompanying this drop was a significant increase in whale transactions, a clear sign of panic selling among the market’s biggest players. A similar, albeit less severe, scenario unfolded on August 28th and 29th, with rising whale transactions and a drop in mean coin age, underscoring increased selling pressure.
Bearish Sentiment and Declining Network Activity
Investors hoping for a reprieve from Pepe’s recent turbulence may need to temper their expectations. Even if prices find support at the $0.0000071 level, the broader network activity is concerning. Over the past week, both daily active addresses and the network growth metric have declined alongside Pepe’s price, indicating reduced market participation and shrinking adoption of the meme coin.
Additionally, the weighted sentiment around Pepe has taken a bearish turn, with online engagement reflecting growing pessimism. While short-term price action could still shift positively, the uninspiring network metrics suggest that any bullish turnaround may be slow to develop.
As Pepe continues to consolidate, the crypto community remains on edge, waiting for the next big move. While the bullish flag on higher timeframes offers some hope, the mixed signals from whale transactions and network metrics suggest that caution is warranted. Investors should keep a close eye on OBV and network participation as key indicators of whether Pepe is ready to break out or if further consolidation—and potential downside—lies ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
A lifelong learner with a thirst for knowledge, I am constantly seeking to understand the intricacies of the crypto world. Through my writing, I aim to share my insights and perspectives on the latest developments in the industry. I believe that crypto has the potential to create a more inclusive and equitable financial system, and I am committed to using my writing to promote its positive impact on the world.
