PEPE, currently the third-largest meme coin by market cap, is seeing a significant downturn as it breaks a key support level. The overall sentiment in the cryptocurrency market has turned decidedly bearish, influencing PEPE’s price momentum and sparking concerns among traders and investors about further declines.
Current Price Momentum
Over the past 24 hours, PEPE has recorded a 2.75% decline, trading around $0.00000797. The meme coin has also experienced a 4.9% dip in trading volume, which signals lower participation from the market. This drop in activity reflects a broader bearish trend, as traders and investors step back amid market uncertainties
PEPE’s recent price action suggests it may be heading for a more pronounced decline. The meme coin recently broke down from a crucial support level within a descending triangle pattern on the daily chart, a formation often associated with a downtrend. This breach has raised concerns of further declines, as technical indicators point to additional bearish momentum.
If PEPE closes below $0.00000795 on the daily chart, analysts warn that the meme coin could face an 18% drop, potentially reaching the $0.0000065 level in the coming days. Adding to the concerns, PEPE has fallen below its 200-day Exponential Moving Average (EMA) on the daily time frame. This move below the 200 EMA, a widely regarded indicator of long-term trends, reinforces the bearish outlook and could signal increased selling pressure in the near term.
Bullish On-Chain Activity Offers a Ray of Hope
Despite the bearish technical setup, on-chain metrics reveal a surprising level of bullish activity. According to data from IntoTheBlock, large transactions—typically conducted by whales and institutions—have surged by 36% over the past day. This uptick in whale activity indicates a degree of confidence from major investors who appear to be accumulating PEPE even as it faces downward pressure.
The timing of this whale interest is notable, as it coincides with rising anticipation around the upcoming U.S. presidential election. Some analysts believe these large holders are positioning themselves for potential price movements tied to political developments, suggesting that PEPE may experience a resurgence in demand.
Also Read: PEPE Price Falls 15% To $0.00000818 – Is The MVRV ‘Buy Zone’ Signaling A Rebound Or More Losses?
Outlook for PEPE – Bearish Short-Term, But Bullish Potential?
PEPE’s price action appears to be in a short-term downtrend due to its recent support level breakdown and declining trading volume. However, the surge in large transactions and whale accumulation suggests a complex picture where big investors are betting on a potential reversal. Should PEPE reclaim its lost support levels and witness an influx of trading volume, it might mitigate the current downtrend.
As market sentiment remains volatile, all eyes are on PEPE’s next moves. A daily close above the $0.00000795 level could indicate a stabilization, while a further decline might validate the bearish outlook. In either scenario, the coin’s strong on-chain metrics underscore a lingering interest from large investors, hinting at PEPE’s resilience in the face of broader market challenges.
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.
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