The cryptocurrency market is facing challenges in gaining positive momentum, with meme coins, in particular, experiencing difficulties. This has led to PEPE’s price stabilizing in a bearish zone for an extended period. On-chain data suggests a potential 20% decline in value due to buyers struggling to overcome resistance levels.
Pepe’s Volatility on the Decline
Pepe (PEPE), the frog-themed meme coin, has seen a significant drop in value over the past month. After reaching a high of $0.000028, its price plummeted by 45% within just 30 days.
This sharp decline has prompted traders to reduce their investments swiftly, mirroring actions taken with other assets in the market. Coinglass data reveals that approximately $1.6 million was liquidated in Pepe, with buyers closing nearly $1.1 million in long positions.
According to Glassnode, PEPE has experienced substantial deleveraging, with Futures Open Interest in the meme coin market seeing a significant drop from previous highs.
A recurring pattern emerges where open interest decreases following periods of high demand for meme coins. This not only signifies a reduction in leverage but also signals a shifting sentiment towards meme coins.
For instance, PEPE has witnessed a 45% price drop this month, with its futures open interest plunging by 75% from $1.25 billion to $249 million. Data from IntoTheBlock indicates a decrease in Pepe’s price volatility from 132.5% to 113.4% over the past week. This diminishing volatility may keep Pepe in a bearish trend, making it challenging for the coin to surpass the $0.00001 mark.
Interestingly, there has been a notable increase in whale activity in Pepe recently. The number of large transactions surged from 105 to 289 transactions last week while Pepe’s price was consolidating. This uptick in whale involvement could potentially pave the way for a breakout, either to the upside or downside.
Future Prospects for Pepe Price
Meme coin enthusiasts are finding it tough to push Pepe’s price above the moving averages, indicating waning demand at higher price levels. Currently, Pepe’s price is struggling below $0.00001 as bearish pressure mounts above that threshold. At the time of writing, Pepe is trading at $0.00000929, showing a modest 0.8% increase in the last 24 hours.
If the price drops below $0.000008, bears could take charge, potentially pushing the PEPE/USDT pair towards the critical $0.0000059 support level. Buyers are likely to defend this level vigorously, as breaching and closing below it could trigger significant long liquidation.
Conversely, a bounce from $0.000008 or a break above $0.00001 from the current position would signal a resurgence in bullish momentum. This could propel the pair towards $0.0000111 and possibly extend gains to $0.000015.