Over the last three months, PEPE has witnessed a notable decrease in the number of significant transactions, dropping from a peak of 1,520 to just 155. This decline closely mirrors the downtrend in PEPE’s value, which declined from $0.000026 to $0.000010 during the same period.
Historically, a decrease in large transactions often indicates waning interest or liquidity, which typically leads to a decrease in asset value, as was evident between December and February.
In early December, the number of large transactions surged to 1.52k when the price spiked to $0.000026. Subsequently, as the volume of large transactions decreased, the price also took a hit, confirming a potential relationship between transaction volume and price stability.
This pattern reached its culmination in late February, with only 155 significant transactions recorded, signaling reduced trading activity and a potential decline in market confidence. This, in turn, exerted downward pressure on the price of PEPE.
This historical trend serves as a prime example of how substantial changes in transaction volume can directly influence asset valuation within the cryptocurrency market.
What Lies Ahead for PEPE’s Price Movement?
Having witnessed a more than 37% drop in price over the past month while experiencing a 60%+ increase in volume, PEPE could be poised for further decline, indicative of a sell-off in the Futures market.
An assessment of the PEPE/USDT pair on Binance indicates that the price is currently approaching support levels ranging between $0.0000620 and $0.0000420, with the current price sitting at $0.0000924. Additionally, PEPE trading below the 200EMA further confirms the prevailing downward momentum, signaling a bearish sentiment.
The OBV indicator, presently at 1.699T, has been trending downwards alongside the price, pointing towards selling pressure. This negative divergence often hints at potential future declines on price charts.
Nonetheless, the current price level represents a support zone, which could act as a foundation and potentially trigger a reversal if there is an uptick in buying interest. If this support holds, PEPE might experience a bounce back towards the $0.0001 resistance level.
On the contrary, a break below $0.0000774 could indicate further downward movement, possibly testing new lows near $0.000062. The OBV’s low reading could signal a potential recovery if reversed or confirm a more substantial decline if the downward trend persists.
In/Out of the Money Analysis
An analysis of the “In/Out of the Money Around Price” metric reveals that approximately 36.68% of holders are currently in profit, accounting for $259.54 million. This segment could provide support at lower price levels, adding stability in the event of a price dip.
For holders who purchased PEPE above the current price, around 57.47%, totaling $406.59 million, may act as resistance levels at higher price points. These holders might consider selling to limit losses or await a potential price recovery.
About 5.85% of holders are near the break-even point, representing $41.37 million. It is notable that a significant proportion of holders are currently out of the money, which could lead to selling pressure if prices attempt to rise, potentially limiting upwards movement unless there is robust buying momentum to surpass these levels.