The Impending Rise in Selling Pressure Could Propel Memecoin PEPE to New Price Levels
Recent developments in PEPE’s price movement have caught the attention of many investors, with a significant uptick observed in the past 24 hours. However, amidst the excitement surrounding this meme-inspired cryptocurrency, a recent bearish update has raised concerns about a potential price correction.
Surge in Selling Pressure for PEPE?
Analysis from CoinMarketCap indicates that PEPE has surged by more than 5% in the last day, currently trading at $0.00001001 with a market capitalization exceeding $4 billion. This surge has resulted in 219k PEPE addresses being in profit, representing over 72% of all addresses associated with the memecoin.
Despite these positive indicators, recent reports from CryptoCrypto suggest that PEPE’s upward momentum may face obstacles ahead. Recent data from Santiment reveals a shift towards negative sentiment surrounding PEPE, with a decrease in social volume further reflecting a waning interest in the memecoin.
Furthermore, a recent tweet shared by Lookonchain highlighted a significant transaction involving a PEPE holder switching their holdings for another cryptocurrency, signaling a potential increase in selling pressure. Thus, an examination of PEPE’s on-chain data was conducted to verify this claim.
Our analysis revealed a rise in PEPE’s supply on exchanges coupled with a decrease in its off-exchange supply, indicating a potential surge in selling pressure. Additionally, increased exchange inflows and a reduction in holdings by major addresses further support this notion.
Evaluating PEPE’s Future Trajectory
Given the emerging signs of a looming price correction, CryptoCrypto delved into PEPE’s daily chart to identify potential support levels in case of a correction.
Initial projections suggest that in the event of a correction, PEPE could retrace to $0.0000085, with a further decline possibly leading to a level of $0.0000066. Conversely, if the bullish trend persists, PEPE could target a resistance level of $0.0000114 in the near future.