Even though there is significant accumulation in the Bitcoin and altcoin markets, this trend has not yet fully taken hold within the memecoin sector. The prominent memecoin, Pepe, is currently experiencing downward pressure around its resistance points, with key on-chain indicators pointing to a sell-off dominance. Nevertheless, with Pepe coin volatility hitting a four-month high, buying demand is increasingly expected to occur in the coming days.
Pepe’s volatility remains strong despite a decline in active address
Despite gaining an impressive 60% in October, Pepe Coin was unable to maintain this momentum in November as it faced several resistance points. Consequently, the price of Pepe coins rose less than 1% in the opening week of the month, indicating a slowdown in the memecoin rally.
This bearish moment may be mainly due to a steady decline in the number of active addresses. According to data from IntoTheBlock, the number of active Pepe addresses has dropped over the past week. The daily number of active addresses dropped from a peak of 3,700 to just 2,020. This trend indicates that investors may start liquidating their Pepe shares to invest in trending altcoins, due to Pepe’s inability to meet its bullish expectations.
Moreover, sentiment among traders is shifting to bearish positions, as evidenced by the decline in the long/short ratio. The indicator has fallen to a low of 0.7021, with shorts representing over 58% of positions, showing a majority preference for betting against the coin. Nevertheless, the bulls have not completely given up the fight and are keeping resistance high as 42% of positions are long.
Amid these conditions, Pepe coin volatility has risen to a four-month high of 172%, introducing the potential for substantial moves. Should buyers intervene with significant purchases at a low point, there is a chance that Pepe’s price will rise past resistance levels by the end of the month.
What’s next for PEPE Price?
Pepe price recovered from a key support level at $0.00000102, but buyers are finding it difficult to maintain the upward momentum. As a result, Pepe price is still rejected above $0.00000123. At the time of writing, PEPE price is trading at $0.00000115 and is down more than 1% in the last 24 hours.
The sellers will try to take advantage of the recent rejection to push the price of PEPE below the EMA200 mark on the hourly price chart. Should this succeed, the memecoin could fall towards the breakout point, which is $0.00000088, where a stiff battle between the buying and selling parties is expected.
Should Pepe’s price recovery pattern reach the support line, buyers are likely to make another attempt to break the $0.00000148 barrier and overcome the significant resistance at $0.00000188. On the other hand, a breakdown below $0.00000088 could see the memecoin drop to $0.0000006 for an extended consolidation.