While the cryptocurrency market experienced a welcome upswing this week, reaching a high of $26,500 for Bitcoin, PEPE’s price didn’t follow suit. It remained cold, unable to capture the bullish momentum, thereby keeping the price in a bearish zone. As the week draws to a close with PEPE still on a downward trend, holders of this meme coin are eagerly awaiting an opportunity to ‘buy the dip’ in the days ahead.
Whales Lose Confidence On PEPE
Once a darling among whale investors for its extreme volatility and price fluctuations, PEPE coin has recently lost its reputation, failing to meet price expectations. Additionally, trading volume has seen a significant drop, as traders hesitate to open new positions due to the coin’s declined price volatility.
According to information from IntoTheBlock, the volume of large transactions for PEPE coin has plummeted tenfold, going from a high of $40 million to a mere $4 million within a week. This drastic reduction indicates declining confidence among whale investors in holding onto PEPE meme coin. In terms of trading activity, there has been a noticeable decrease in volatility over the past week. The volatility rate has fallen from a peak of 100.1% to 81.4% as of September 15.
Whales are either selling off their holdings or are no longer actively trading PEPE coins. This could be a sign of declining faith in the asset’s potential for high returns.
On the bright side, Pepe coin is showing signs of increased network activity. Data indicates that the number of active addresses has jumped from a low of 965 to 2,500, and there has been a 109% surge in the creation of new addresses over the past two days. Despite the declining price, these metrics point to a growing bullish sentiment for Pepe coin.
What’s Next For PEPE Price?
Pepe coin touched its 20-day exponential moving average of $0.00000068, but failed to break through this resistance level. This indicates that bears are actively defending the 20-day EMA. As a result, the price is consolidating below $0.0000007. As of writing, PEPE price trades at 0.00000067, declining over 2% from yesterday’s rate.
However, the inability of the bears to breach the key support level at $0.00000064 suggests that selling pressure is low at lower price points. The relative strength index (RSI) appears to be forming a positive divergence with the midline, signaling a weakening in bearish momentum.
The first indication of a potential recovery would be a successful break and close above the downtrend line, paving the way for a more sustained rally toward $0.00000083.
Conversely, if the $0.00000064 support level is compromised, the Pepe price could enter a bearish rally. While there is a possibility of bullish defense, it may not be sufficient to halt the decline.