The Frog-themed Pepe coin (PEPE) has experienced a decline of 6.50% over the past week. This drop may be attributed to a significant supply wall that has exceeded the underlying support.
As a result of this resistance, the current trading price of PEPE is $0.0000098. In this on-chain analysis, BeInCrypto discusses how this situation could lead to a prolonged downturn for the meme coin.
Pepe Confronts Significant Supply Wall
According to the In/Out of Money Around Price (IOMAP) data, roughly 5,300 Pepe addresses possess 23.84 trillion tokens, which they acquired at around $0.0000010. At this accumulation price, these tokens have a value of nearly $240 million. It is also crucial to highlight that this group is presently holding the meme coin at a loss.
The IOMAP generally categorizes addresses into those that are in profit, at breakeven, or out of the money. A concentration of addresses out of the money at a particular price point creates resistance at that level.
Conversely, when there is a higher volume of addresses in the money, it indicates a support zone. In the case of Pepe, the volume at $0.000010 significantly surpasses that at $0.0000090, suggesting difficulty for the token to overcome the $0.000010 resistance.
Read more: How to Purchase Pepe (PEPE) Using a Credit Card: A Step-by-Step Guide

Another aspect indicating a potential price drop is the decline in Network Growth. This metric tracks the number of new addresses engaging with a cryptocurrency.
An increase in this metric signifies that more market participants are making their first successful transactions, while a decrease implies a reduction in network activity.
If this downward trend continues, it could mean diminished demand for PEPE, making it challenging for the price to rise.

PEPE Price Assessment: 28% Decrease Possible
An analysis of the daily PEPE/USD chart reveals that the Moving Average Convergence Divergence (MACD) has entered the negative territory.
The MACD is a momentum indicator used to assess the difference between two exponential moving averages (EMAs) of an asset’s price, often the 12-period EMA and the 26-period EMA.
Traders typically use the crossover between the MACD and the signal line to gauge potential bullish or bearish momentum. A positive reading indicates bullish momentum, whereas a negative one suggests bearish momentum.
Read more: Pepe (PEPE) Price Forecast 2024/2025/2030

Since it’s currently in a negative position, this could further depress the price of the Pepe coin. If this trend persists, PEPE’s price might fall by 28% to reach $0.0000070. However, should buying pressure increase and surpass the current $240 million resistance level, the price could rebound towards $0.000014.
Disclaimer
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