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- A fall below the $0.00000590 will lead to a next correction in the short term.
- The memecoin has suffered a significant profit booking and fell below the key EMA’s.
Once regarded as the “King of Memes, ” PEPE has recently seen a major downfall. It made a 52-week low mark of $0.00000590 last week.
Traded inside a falling wedge pattern, the memecoin has yet to gather the necessary strength to climb up. Last week, PEPE bulls attained a revival. They tried to regain momentum but could not surpass the 200-day EMA mark and surrendered below it.
There seems to have been a short period of consolidation in the downtrend for PEPE. It has again dipped back after facing rejection from the 200-day EMA mark. Most memecoins have undergone significant distribution built on the Ethereum and Solana blockchains.
For the past two weeks, the memecoin was hovering around the lower trendline of the wedge pattern and struggling to gather strength.
Will PEPE Continue To Trade With Bearish Bias?
Despite the recent price pullback, PEPE failed to attain follow-on gains and surrendered. Sellers took advantage of lowering buying pressure and triggered yet another bearish leg.
However, a sort of double bottom pattern was exhibited, and the memecoin tried to maintain the support of around $0.00000700.
At press time, the PEPE token was at $0.00000750 with an intraday surge of 4.81%, reflecting a significant price pullback on the chart.
PEPE Price Chart | Source: Santiment
Losing more than 40% in a month, the PEPE memecoin has conveyed a heightened selling pressure. It was traded under the bearish influence.
A tweet by @lookonchain mentioned a significant wallet transfer activity. The account mentioned that a user has withdrawn over 828.64 B $PEPE ($6.18M) from his wallet.
A tweet by @lookonchain | Source:X
Generally, buying pressure rises when the holdings have been transferred from the exchange to a significant wallet. That pressure triggers a potential upmove.
Until the token is capped inside the falling wedge pattern, the memecoin will continue to trade with the bearish bias. It may face significant losses.
If it breaks the overhead trendline barrier of $0.00000930, a fresh pullback can be seen in the short term.
The RSI line stayed in the oversold region, representing a sustained selling pressure underlying a negative sentiment. Likewise, the MACD indicator still projected the red bars on the histogram.
Social Dominance and Active Addresses Data Overview
With a price surge of over 4%, the social dominance data saw an immense rise and soared more than 10% to 1.108%. It highlighted the rise in investor chatter on media platforms.
Social Dominance Data | Source: Santiment
Notably, the active addresses data represented a steady bar on the histogram. It reflected flat movements and a neutral investor’s belief in the memecoin.
The Futures Open Interest shed over 2.30% to $93.47 Million, which signifies a short covering activity in the past 24 hours.
Futures Open Interest Data Outlook
Generally, an increase in the asset price and a decrease in the Open interest signals signs of bottoming out. Also, a fresh spark can be seen ahead.
If the selling pressure resumes, the PEPE price may plunge toward the 52-week low region near the support zone of $0.00000600. It may drop toward the $0.000005300 in the short term if it fails to hold the mark.
On the contrary, history will repeat if the memecoin surpasses the prompt 200-day EMA mark. PEPE might trigger a sharp, bullish reversal. On the upside, the resistance level was around $0.00000880, followed by $0.00001000.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
