Pepe’s (PEPE) value has skyrocketed by 956% over the last year. However, despite reaching a new all-time high in May, the meme coin might be facing potential further declines.
As of now, PEPE’s market capitalization is at $0.0000073. With sellers beginning to take charge, the coin’s bullish momentum is encountering significant hurdles, indicating a possible downturn in its price trajectory.
Pepe at a Pivotal Point
On the 4-hour chart, PEPE is trading close to the 20 and 50-day Exponential Moving Averages (EMA), which are essential technical indicators for assessing a cryptocurrency’s trend.
Historically, when PEPE trades above these EMAs, it has experienced prolonged rallies. For instance, on August 22, the 20-day EMA (blue) crossed above the 50-day EMA (yellow), creating a golden cross—a bullish indicator. At that moment, PEPE was valued at around $0.0000078, and within three days, the price surged to $0.0000096.
Currently, both EMAs are converging, indicating that PEPE’s short-term outlook is at a critical crossroads. This may lead to either a new price rally or an indication of further decline depending on market dynamics.
Read More: How To Purchase Pepe (PEPE) and Everything You Need To Know
As the frog-themed cryptocurrency navigates this pivotal moment, data from IntoTheBlock suggests that the bears might be taking control. BeInCrypto’s assessment of the Bulls and Bears indicator points to this possible shift.
To provide context, bulls represent addresses that bought at least 1% of total trading volume during a given timeframe, while bears denote those who sold a similar percentage. When there are more bulls than bears, it usually points to a potential price increase.
However, with more bears than bulls at present, PEPE’s price could encounter a substantial decline.
PEPE Price Forecast: Bulls in Peril
In terms of price forecasting, the In/Out of Money Around Price (IOMAP) metric indicates that PEPE may face considerable resistance as it attempts to rise higher. The IOMAP organizes addresses based on whether they are profiting, losing, or breaking even at the current price. It then evaluates the volume of tokens purchased at different price points to identify potential support or resistance areas.
When there’s a substantial volume of tokens bought and “out of money” (currently at a loss), the cryptocurrency is likely to encounter resistance. On the other hand, a greater volume of tokens bought “in the money” (at a profit) offers support, indicating a potential price move upwards.
Currently, over 34 trillion PEPE tokens are held at a loss, with acquisitions made at a peak price of $0.0000080. At the same time, approximately 7 trillion tokens were purchased at $0.0000070 and remain profitable. This disparity implies that PEPE may find it challenging to surpass the $0.0000080 resistance level, possibly experiencing rejection.
Read More: 5 Best Wallets for Pepe (PEPE) for Both New and Experienced Users
Thus, PEPE’s price could decline to $0.0000070, and in a very bearish scenario, a drop to $0.0000060 is possible. However, an increase in buying volume from bulls could change the trajectory, enabling PEPE to rally towards $0.000010.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be viewed as financial or investment advice. BeInCrypto is dedicated to delivering accurate and unbiased reporting; however, market conditions can change unexpectedly. Always perform your own research and seek advice from a professional before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
