While the cryptocurrency market saw a welcome rebound this week, reaching a high of $26,500 for Bitcoin, the price of PEPE did not follow suit. It remained cold and failed to leverage the bullish momentum, leaving the price in a bearish zone. As the week comes to a close and PEPE is still in a downtrend, holders of this meme coin are eagerly awaiting an opportunity to ‘buy the dip’ in the coming days.
Whales lose confidence in PEPE
Once a darling among whale investors due to its extreme volatility and price fluctuations, the PEPE coin has recently lost its reputation and failed to meet price expectations. Furthermore, trading volume has dropped significantly as traders hesitate to open new positions due to the coin’s decreased price volatility.
According to information from IntoTheBlock, the number of large transactions for PEPE coins has increased tenfold, from a high of $40 million to just $4 million within a week. This drastic reduction signals declining confidence among whale investors in holding onto the 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% on September 15.
Whales no longer sell their holdings or actively trade PEPE coins. This could be a sign of declining confidence in the asset’s potential for high returns.
On the plus side, the Pepe coin is showing signs of increased network activity. Data shows that the number of active addresses has risen from a low of 965 to 2,500, and there has been a 109% increase in new addresses being created over the past two days. Despite the falling price, these statistics indicate growing bullish sentiment for the Pepe coin.
What’s next for PEPE Price?
The Pepe coin reached the 20-day exponential moving average of $0.00000068 but failed to break this resistance level. This indicates that bears are actively defending the 20-day EMA. As a result, the price consolidates below $0.0000007. At the time of writing, the PEPE price is trading at 0.00000067, down more than 2% from yesterday’s price.
However, the bears’ inability to break the key support level at $0.00000064 suggests that selling pressure is low at lower prices. The relative strength index (RSI) appears to be forming a positive divergence from the centerline, indicating a weakening of 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 sustainable rally towards $0.00000083.
Conversely, if the $0.00000064 support level comes into danger, Pepe price could enter a bearish rally. While there is an opportunity for bullish defense, it may not be enough to stop the decline.