Since December 2024, PEPE coin, a well-known cryptocurrency associated with memes, has seen its value drop by more than 45%, struggling to regain momentum at present.
The current market conditions make it challenging for PEPE to reverse its downward trajectory, mirroring the struggles faced by major cryptocurrencies like Bitcoin and Ethereum.
However, recent data from the daily trading chart and blockchain metrics suggest that PEPE’s declining trend might be on the verge of a turnaround.
PEPE Price Forecast
As indicated by technical analysis from CryptoCrypto, PEPE has been on a consistent downward trend in the past few weeks, forming a bullish falling wedge pattern on its daily chart.
Falling wedge patterns, characterized by a narrowing width over time, often signal a potential bullish reversal.
PEPE is currently hovering around the lower boundary of this pattern, historically demonstrating a strong propensity for upward momentum at this level.
Having touched this boundary on more than four occasions since December 2024, PEPE has consistently shown signs of upward movement.
If PEPE manages to maintain this lower boundary of the falling wedge, there is a high likelihood that it could surge by around 30%, aiming to reach the $0.000019 mark in the near future.
Factors Strengthening PEPE’s Position
The current price level finds support not only from the pattern’s lower boundary but also from the 200 Exponential Moving Average (EMA) on the daily chart, reinforcing its ability to sustain this level.
The successful retest of the 200 EMA suggests a bullish trend for PEPE, while the Relative Strength Index (RSI) nearing oversold levels indicates a potential bullish momentum in the near term.
Mixed Signals from On-Chain Data
According to on-chain analytics provided by Coinglass, long-term holders are displaying significant interest and confidence in PEPE coin.
Recent data on spot inflow/outflow reveals that exchanges have seen an outflow of PEPE assets totaling $161.36 million over the past six days.
This consistent outflow from exchanges implies that investors and long-term holders are withdrawing their assets, potentially driving up prices and strengthening buying pressure.
Moreover, traders have accumulated substantial long positions worth $2.62 million at the lower end of $0.00001446, while short sellers have amassed $3.73 million in short positions at $0.00001542. However, these positions could be liquidated if PEPE’s price makes a significant move in either direction.
Notably, short positions exceed long positions by a considerable margin, signaling bearish sentiment among intraday traders due to prevailing market conditions.
As of the latest update, PEPE is trading around $0.00001494, reflecting a decline of over 4.50% in the last 24 hours.
This downturn has impacted trading activity, resulting in a 35% decrease in trading volume as traders and investors tread cautiously amidst market uncertainty.