Pepe (PEPE), the popular meme coin, is facing a critical juncture as technical and on-chain indicators point to growing bearish sentiment. After a period of strong momentum, recent data suggests that PEPE holders are increasingly moving their tokens to exchanges and realizing losses, raising the risk of a further price correction.
Key Developments:
• Approaching Key Support: PEPE is currently hovering near an important ascending trendline, with the $0.0000103 level acting as a crucial support. A daily close below this threshold could trigger a sharper decline, potentially accelerating selling pressure.
• On-Chain Metrics Turn Negative: According to Santiment’s Network Realized Profit/Loss (NPL) metric, PEPE holders have shifted from modest gains to significant losses, with the NPL dropping from 189,150 to -50.21 million in just one day. This shift signals a notable drop in investor confidence.
• Rising Exchange Supply: The supply of PEPE on exchanges has increased from 103.55 trillion to 104.12 trillion, indicating that more holders are preparing to sell, which could further weigh on the price.
• Momentum Indicators Weaken: Technical analysis shows that PEPE recently broke below its 50-day Exponential Moving Average (EMA) at $0.0000114, followed by a 9% decline. The Relative Strength Index (RSI) is at 40 and trending downward, while the Moving Average Convergence Divergence (MACD) has confirmed a bearish crossover, both pointing to growing downside momentum.
What’s Next for PEPE?
If PEPE fails to hold the $0.0000103 support, analysts anticipate a potential 15% drop toward the next support at $0.0000088, with further downside possible to $0.0000079 if bearish momentum persists. Conversely, a successful defense of the trendline could see PEPE attempt a recovery toward the 50-day EMA at $0.0000114.
Market Sentiment and Broader Context:
While some forecasts, such as those from CoinCodex and Wallet Investor, suggest further downside in the short term, others remain cautiously optimistic if broader crypto market conditions improve . The current environment, however, is marked by increased caution as meme coin hype cools and investors reassess risk.
For those tracking PEPE, the coming days will be pivotal. A decisive move below key support could reinforce the bearish trend, while a bounce could offer a short-term reprieve. As always, market participants should monitor both technical levels and on-chain activity for early signs of a shift in sentiment.
