PEPE, the third-largest meme-based cryptocurrency, currently boasts a market capitalization of $7.8 billion. With gains exceeding 1,000% over the past year, PEPE has emerged as a prominent contender in the crypto space.
At the time of writing, PEPE was trading at $0.00000738, reflecting a modest 2% increase within a 24-hour period. Despite the waning enthusiasm surrounding meme coins, PEPE is experiencing challenges in sustaining a bullish trend, potentially paving the way for bearish sentiment to dominate.
On the one-day chart, PEPE displayed signals of a potential death cross as the 50-day Exponential Moving Average (EMA) approached the 200-day EMA, indicating a weakening short-term momentum relative to the long-term momentum.
Nonetheless, the confirmation of this death cross hinges on a decisive crossover with the 200-day EMA, a scenario yet to materialize as the two averages continue to converge, reflecting uncertainty in the market’s direction.
Investors are poised to combat the impending death cross, with the Chaikin Money Flow (CMF) pointing upwards, albeit remaining in negative territory but inching closer to the neutral point. A shift to positive values in the CMF would signal a bullish reversal for PEPE.
However, lingering liquidity at $0.00000633 poses a potential support level, with a breach at $0.00000686 likely to trigger a further descent to gather this liquidity before a definitive move.
On-chain Metrics Indicate Bearish Trends
On-chain data reveals additional bearish indicators for PEPE. According to Santiment, the number of daily active addresses for PEPE has dipped to a five-day low, suggesting that recent price gains were fueled by a limited group of traders, necessitating broader market involvement to validate an upward trend.
Additionally, sentiment in the derivatives market leans bearish, with data from Coinglass indicating a marginal 1.2% uptick in PEPE’s Open Interest to $82 million. Concurrently, negative Funding Rates signal an increase in short positions on PEPE by traders.
Despite prevailing bearish signals, sizable investors, often referred to as whales, have been accumulating PEPE, potentially mitigating the impact of the impending death cross. IntoTheBlock data illustrates a notable surge of over 1,000% in large holders’ netflow to PEPE over the last month, a trend that has shielded PEPE from a significant decline despite the negative market indications.