Pepe (PEPE), the popular meme coin, is currently battling significant resistance as it struggles to maintain its price levels. Trading at $0.0000098, the coin faces tough market conditions that could lead to further declines. A combination of technical analysis and on-chain metrics suggests that PEPE’s price could see a substantial decrease in the coming days. This article takes a closer look at the factors influencing PEPE’s price and what the future might hold for the meme coin.
Supply Wall At $0.000010 – A Major Barrier
According to on-chain data from the In/Out of Money Around Price (IOMAP) metric, a critical supply wall is forming at $0.000010. Around 5,300 PEPE holders accumulated nearly 23.84 trillion tokens at this price level, equivalent to roughly $240 million. However, these addresses are currently holding PEPE at a loss, and the concentration of these addresses at this price point creates strong resistance.
The IOMAP tool helps identify price levels where holders are either in profit, at breakeven, or at a loss. In PEPE’s case, the heavy volume of holders “out of the money” at $0.000010 suggests it will be challenging for the meme coin to break through this resistance. If these holders decide to offload their tokens, it could further suppress any upward momentum, cementing this price as a critical barrier.
Network Growth Decline Signals Weak Demand
Adding to the bearish outlook for PEPE is the decline in its Network Growth. This metric measures the number of new addresses interacting with the cryptocurrency. A decrease in new addresses indicates weakening demand and less traction on the network. In PEPE’s case, fewer new participants are entering the market, signaling diminishing interest. If this trend continues, PEPE could struggle to attract enough buying pressure to overcome its existing challenges, leading to a potential extended price downturn.
From a technical standpoint, PEPE’s daily chart reveals troubling signs. The Moving Average Convergence Divergence (MACD), a key momentum indicator, has dropped into the negative territory. The MACD tracks the difference between two exponential moving averages (commonly the 12-day and 26-day EMAs) and helps traders spot shifts in momentum.
With PEPE’s MACD now in the negative zone, the momentum is firmly bearish. This suggests that the coin could face further declines unless there is a significant reversal. Should the bearish momentum persist, PEPE’s price could drop by as much as 28%, bringing it down to around $0.0000070. However, if buying pressure intensifies, particularly at the $0.000010 resistance, there’s a possibility for a rebound toward $0.000014.
Will PEPE Rebound or Continue to Decline?
PEPE is facing critical headwinds, with strong resistance at $0.000010 and waning demand on the network. While a price drop of 28% seems likely based on current indicators, a surge in buying volume could still provide a lifeline for the meme coin. Investors should closely watch the price action at the $0.000010 resistance level and the MACD for signs of potential recovery.
Also Read: Pepe (PEPE) Drops 2.46% Amid Bearish Signals After 23.7% Rally – Will Support Hold?
In the short term, PEPE’s future hinges on its ability to attract new participants and generate sufficient buying pressure to overcome the significant supply wall. Without a notable increase in demand, the meme coin could continue its downward trend.
PEPE’s immediate future looks challenging, with strong resistance levels and bearish momentum threatening further price declines. While there is potential for a rebound, the odds favor a continued downturn unless market dynamics shift significantly.
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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