Meme coin PEPE had a turbulent week, experiencing a 14% price drop, but found solace in rising bullish sentiment and technical indicators pointing to a potential recovery.
Investors are in trouble, but whales’ appetites are growing
NewsBTC’s analysis, using data from IntoTheBlock, revealed more than 70% of Pepe investors is currently in losses, which suggests a challenging week. However, Whales saw opportunity in the dip, with Santiment data showing a sharp increase in Pepe ownership by top addresses.
Source: IntoTheBlock
Bullish Buzz Despite Price Drop
Sentiment around Pepe took an interesting turn, defying the price drop. The meme coin’s Weighted Sentiment, tracked since February 1, witnessed an increase, indicating growing optimism within the community. This positive buzz was further fueled by consistent social media engagement, which was reflected in high Pepe volume throughout the week.
PEPEUSD currently trading at $0.00000089589 on the daily chart: TradingView.com
Exchange activity signals Please note
As the whale numbers piled up, broader sales sentiment weighed on Pepe. NewsBTC noted a drop in outflows from exchanges, indicating that investors have been withdrawing their assets from exchanges for possible sale. Furthermore, a drastic increase in supply at trade fairs, coupled with a decline in off-exchange supply, painted a picture of potential selling pressure in the near future.
Source: Santiment
Technical data indicates reversal
Despite the recent price problems, Pepe’s daily chart offered some positive signals. The MACD indicator indicated a potential bullish crossover, indicating a shift in momentum. The Relative Strength Index (RSI) was approaching the oversold zone, which could potentially lead to buying pressure if the index enters that area. The Chaikin Money Flow (CMF) also showed an uptick, further strengthening the possibility of a price increase.
Bears are currently trying to push the price below a crucial support level at $0.0000009. If this level breaks, significant losses could occur, potentially dragging the price to the low of $0.0000006 in September/October 2023, which represents a drop of more than 30% from current levels.
Source: DEXTools
The power of community endures
Despite market fluctuations, Pepe maintains a strong presence in the community more than 154,000 individual holders and active communities on platforms such as X (formerly Twitter) and Telegram, with more than 500,000 followers and 60,000 members respectively.
The prospects for Pepe remain cautiously optimistic. While recent price declines and selling pressure are cause for concern, bullish sentiment, technical indicators and a strong community point to potential for a turnaround.
However, investors should carefully consider both the positive and negative factors before making investment decisions, recognizing the inherent volatility associated with meme coins.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.