Pepe (PEPE) price has been in a bearish shift in the last 24 hours, swaying between an intra-day high and low of $0.00001176 and $0.00001041. Despite initial optimism for a recovery, prevailing bearish cues challenge the coin’s ability to sustain an upward trajectory.
Another factor that raises questions about PEPE’s near-term outlook is the Relative Strength Index (RSI). The RSI, a momentum oscillator used to determine when a stock is overbought or oversold, is currently trading just below the 50 level. This indicates that the price momentum of PEPE is still uncertain and is not yet capable of confirming the trend reversal.
Without the RSI flipping into a supportive stance, the risks of further declines overshadow the potential for recovery.
Additionally, the Awesome Oscillator (AO) on the daily chart supports this bearish outlook. The AO remains below its mean level of zero, indicating continued momentum favoring the bears. This aligns with the general bearish sentiment, as PEPE recently breached its ascending trendline support, a key technical level that had previously provided stability.
The trading behavior of PEPE investors suggests that they are booking profits, which is further contributing to the bearish trend. Using IntoTheBlock data, about 26% of the active addresses that hold PEPE tokens are in a profitable situation. This causes a powerful urge to take profits and sell, which leads to increased selling pressure.
This is unhealthy for the coin’s price, and it will often lead to a wave of profit-taking that may hinder the price from bouncing back.
This selling pressure is also depicted in the In/Out of the Money Map (IOMAP). According to the IOMAP, a large number of addresses purchased PEPE at an average price of $0.0000110. If the price gets to this level, many investors may decide to sell in order to get their initial investment back. This could present a significant zone of resistance, which would prevent PEPE from being able to maintain any upward momentum.
On-chain analysis also aligns with the bearish sentiment concerning PEPE. According to the Santiment’s Daily Active Addresses index, which reflects the network activity, it has been decreasing. The Daily Active Addresses have dropped by 24% in the last seven days, which is a trend that began at the end of May.
The decline in network activity suggests that people in the wider crypto community are less active and interested in the given token. This is quite worrying because it shows that there are few new entrants and usage is on the decline—an important aspect for maintaining prices and encouraging a recovery.
Despite these bearish indicators, PEPE’s price action near critical support and resistance levels offers hope. Currently, PEPE is marginally above a pivotal support line at $0.00001020.
This level has proven to be a battleground between bears and bulls, with its sustainability being crucial for PEPE’s short-term trajectory. If this support holds, it might set the stage for PEPE to claw back its recent losses with a target of $0.000013 and $0.000014.
Conversely, a breakdown below this support could precipitate a significant sell-off. The next key support level is around $0.00000870, and failure to maintain the current support could lead to a swift decline toward this lower threshold. On the upside, PEPE needs to break through the resistance levels at $0.0000110 and $0.0000125 to signal a potential reversal and initiate a rally.