Pepe’s (PEPE) price has surged by 956% over the past 365 days. However, despite hitting a new all-time high in May, the meme coin may be poised for further losses.
At press time, PEPE’s market value sits at $0.0000073. As sellers begin to take control, the coin’s bullish momentum faces serious challenges, signaling a potential downturn in its price trend.
Pepe Now at Make or Mar Position
On the 4-hour chart, PEPE is trading near the 20 and 50-day Exponential Moving Averages (EMA), key technical indicators used to assess a cryptocurrency’s trend.
Historically, PEPE’s price has seen extended rallies when it trades above these EMAs. For example, on August 22, the 20-day EMA (blue) crossed above the 50-day EMA (yellow), forming a golden cross — a bullish signal. At that time, PEPE was trading around $0.0000078, and within three days, the price surged to $0.0000096.
However, as of now, both EMAs are converging, indicating that PEPE’s short-term potential is at a crucial juncture. This could either lead to a new price rally or signal further decline depending on market momentum.
Read More: How To Buy Pepe (PEPE) and Everything You Need To Know
As the frog-themed cryptocurrency navigates this critical period, on-chain data from IntoTheBlock suggests that bears may be gaining control. BeInCrypto’s analysis of the Bulls and Bears indicator points to this shift.
For context, bulls represent addresses that purchased at least 1% of the total trading volume during a specific period, while bears are those who sold a similar amount. When there are more bulls than bears, it typically signals a potential price increase.
However, since there are currently more bears than bulls, PEPE’s price may face a significant decline.
PEPE Price Prediction: Bulls in Trouble
Regarding price prediction, the In/Out of Money Around Price (IOMAP) metric reveals that PEPE may encounter significant resistance as it tries to climb higher. The IOMAP groups addresses based on whether they are making money, losing money, or breaking even at the current price. It then analyzes the volume of tokens bought at various price levels to determine potential support or resistance zones.
If there’s a high volume of tokens bought and “out of money” (currently at a loss), the cryptocurrency is likely to face resistance. Conversely, a higher volume of tokens bought “in the money” (at a profit) provides support, indicating a possible price increase.
As of now, over 34 trillion PEPE tokens are held at a loss, with purchases made at a maximum price of $0.0000080. Meanwhile, about 7 trillion tokens were bought at $0.0000070 and are currently in profit. This imbalance suggests that PEPE may struggle to break through the $0.0000080 resistance, potentially facing rejection.
Read More: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users
As a result, PEPE’s price could fall to $0.0000070, and in a highly bearish scenario, it may drop further to $0.0000060. However, a surge in buying volume by bulls could turn the situation around, pushing PEPE toward a rally to $0.000010.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/pepes-explosive-price-gains-under-threat/
2024-09-12 17:09:03
