Meme-inspired cryptocurrency PEPE is currently facing significant downward pressure, having dropped below a critical support level. This shift has raised alarms among traders, with predictions suggesting a potential further decline of approximately 15%. As trading volumes dipped to $980 million, there was also a notable contraction in open interest, which fell by 4% to $535 million, according to data from CoinGlass. This trend points to decreasing confidence within the trading community.
Derivatives data reveal a concerning trend, with long liquidations amounting to $326,000, starkly eclipsing shorts at just $9,900. This imbalance could trigger an acceleration of the token’s downward momentum. Meanwhile, network activity for PEPE has plummeted, with daily active addresses dwindling to fewer than 3,000. This sharp decline is particularly striking given that late 2024 saw a peak of 27,500 active addresses during a notable price rally.
Trader Alpha Crypto Signal has indicated that PEPE’s price might experience a severe breakdown, potentially slipping to the range of $0.0000085 to $0.0000080 as it navigates away from a symmetrical triangle formation. Supporting this bearish outlook, recent data from Nansen shows that the top 100 PEPE addresses on the Ethereum blockchain increased their holdings by only 0.2% over the past week, while the volume of PEPE on exchanges increased by 1.13%.
In terms of technical analysis, PEPE exhibited considerable volatility throughout the latest trading cycle, fluctuating within a 5% range between $0.000010028 at its peak and dipping to $0.000009567 at its low, as noted by CoinDesk Research’s technical analysis model. A rally earlier in the week temporarily elevated the price to the $0.000010000 mark on a considerable volume of 2.6 trillion tokens, but this upward momentum has since stalled, allowing sellers to regain control.
As of now, PEPE’s price has settled lower, testing levels around $0.000009610, marking a 4% retraction from its recent highs. Hourly trading patterns indicate resistance is forming around $0.000009640, despite significant volume spikes exceeding 89 billion tokens. This trend suggests a phase of distribution rather than accumulation, further emphasizing the token’s current struggle in the market.
