In recent years, a kaleidoscope of memecoins has emerged, each striving to surpass the others in terms of technological innovation, value, and popularity. Among the myriad of virtual tokens, the PEPE coin, which recently saw a rapid surge, caught the attention of the global crypto community. However, the dizzying rally of the coin failed to maintain its momentum and faced a significant drop. After the initial euphoria surrounding the rise of the PEPE coin has subsided, the real question floating around is whether the coin is ready for a further pullback.
PEPE gains less trading volume compared to SHIB, DOGE
According to a recent study by on-chain analytics firm Santiment, retail investors have largely missed Pepecoin’s (PEPE) meteoric rise to a $1.5 billion market cap in just a few weeks. In fact, this substantial growth came about as the token racked up billions of dollars in daily trading volumes and sparked a wave of similar tokens.
Santiment revealed that Dogecoin and Shiba Inu reached staggering trading volumes of $70 billion and $40 billion respectively at their peak. By comparison, Pepecoin’s trading volume was a modest $2 billion.
However, an important aspect to take into account here is that Pepecoin achieved these volumes during a bear market characterized by overall lower liquidity as major market players reduced their crypto trading activity. This suggests potential room for expansion when broader market conditions improve.
However, this also points to a less vibrant retail market for PEPE compared to previous years’ activities with DOGE and SHIB. According to the report, retail participation has become almost invisible, leading to declining trading volumes for meme coin projects out there, reflecting PEPE’s current bearish trend.
What’s next for PEPE token?
PEPE memecoin has recently experienced a drop in trading volume, which indicates that traders are exiting this meme coin market. However, several crypto giants, including Justin Sun, have joined this memecoin rally, signaling a potential upswing for this memecoin in the coming weeks.
At the time of writing, the PEPE coin is trading at $0.00000158, up more than 5% in the past 24 hours. The memecoin fell nearly 30% this week, eliminating all of the huge gains.
Analyzing the 1-hour price chart, the PEPE token is on the brink of a bearish region as bears aim to push the price below $0.00000148. If PEPE falls below the 23.6% Fib level, it could fall further and reach a low of $0.0000012.
However, on the bullish side, a reversal is expected from the immediate support level. If bulls pull the price and send it above the EMA100 resistance, the PEPE token could aim for a bullish trade above the EMA200.
