PEPE Bulls and Bears Reach a Draw Anticipating a 26 Increase this Week

CoinJiexi.com reports:
Memecoin is one of the currencies with the largest increase in value after the market recovery on July 6th, but it has fallen by 3.21% in the past 24 hours.
However, the story doesn’t end there. As of the time of writing, the price of PEPE is $0.0000088. According to IntoTheBlock, this value may continue to trade within this range for some time.
We made this inference after examining bullish and bearish indicators. This indicator tracks the activity of buyers who account for 1% of the total trading volume of a certain period.
Buyers who account for 1% of the total trading volume are called longs. On the other hand, sellers are called shorts. If there are more longs than shorts, the likelihood of price increase is higher.
However, if there are more shorts than longs, the price may tend to fall. As of the writing of this article, the number of longs and shorts is equal. In this case, PEPE may not experience significant value surges or major corrections.
In order to validate this potential, we also evaluated the exchange flow. According to Santiment’s data, the inflow to exchanges is 678.69 billion PEPE, which is the amount of PEPE sent from external wallets to exchanges.
In most cases, participants holding these platform tokens plan to sell them in the short term. In contrast, the outflow of PEPE from exchanges is 625.55 billion. The outflow is the amount of tokens withdrawn from exchanges.
When this number increases, it means that holders are more willing to hold the assets rather than sell them. Due to the similar inflow and outflow quantities, PEPE may not experience significant increases or decreases.
Therefore, the PEPE trading price may remain between $0.0000088 and $0.0000095.
The evidence of this phenomenon is also reflected on the internet. As of the time of writing, the number of new addresses, active addresses, and zero-balance addresses on PEPE have all decreased.
Active addresses indicate the number of users participating in the network. On the other hand, new addresses serve as proof of token adoption. When these indicators increase, it means that the network’s attractiveness is at a good level.
If this is the case, it means that the demand for the token is increasing. Therefore, the recent decline implies lower demand for PEPE.
If this situation continues, the value of the token may face consolidation. The possible target may be the aforementioned range of $0.0000088 to $0.0000095.
Despite this, the Pepe price chart shows some bullish signs, which may drive this meme coin to new heights or at least alleviate its excessive bleeding in these turbulent market conditions.
Pepe Price Analysis
Decision time for Meme Coin, 26% profit or 20% loss
Shortly after the Bitcoin price broke below a key support level, the PEPE price showed a false breakout on the daily chart. This meme coin is one of the best-performing meme coins on the Ethereum blockchain, which of course led to the drastic changes in BTC. The price of Pepe just broke out of a descending wedge and retested the top trendline of the descending wedge before heading towards its previous all-time high of $0.00001720.
Since Bitcoin’s decline on July 1, 2024, PEPE has fallen 30% to its current price. Interestingly, the PEPE price is still trending above the 200-day Simple Moving Average (SMA), which is a feat that has sparked bullish sentiment among market participants.
The price of PEPE is currently at a relatively weak support level around $0.00000773. If the longs prevail, PEPE could rise by 26% to $0.0001108, which also aligns with the 50-day SMA. On the other hand, the meme coin could further decline by 20% and find support at $0.00000650.
PEPE’s 14-day Relative Strength Index (RSI) is at 34, just 4 points above the oversold (OS) zone. If it falls into that zone, the PEPE price could face greater selling pressure, potentially dropping to the support level of $0.00000650. Conversely, an RSI of 34 indicates significant upside potential for the meme coin if the overall market conditions change.
Pepe Fundamentals Remain Bullish
Data from Santiment and Etherscan shows that PEPE holders have increased by 5.76% in the past month and by 0.01% in the past 24 hours, indicating that investors are still accumulating this meme coin despite the price decline.
Currently, most cryptocurrency traders in the market remain bullish on PEPE, as the significant increase in the number of Pepe holders is seen as a positive signal for the crypto asset.
With the continuous decline in Bitcoin’s price and its 51% market dominance, meme coins like Pepe may have little chance to break free from this dominance.
Conclusion
Despite the significant decline in Bitcoin, Pepe coin has shown unexpected resilience and maintained a bullish sentiment in a volatile market. This strength highlights the unique market dynamics of meme coins and indicates the increasing interest of traders seeking alternative investments in the backdrop of cryptocurrency volatility.