PEPE Price Recovery Continues Despite Profit-Taking

Pepe (PEPE) price has experienced a notable rally, marking an 85% gain in the last 30 days and testing the resistance at $0.0000118. Despite facing rejection at this level, the meme coin has shown resilience with a 0.65% increase in the last 24 hours, according to CoinMarketCap. 

At the time of writing, the Pepe price stands at $0.000009421, with a 24-hour trading volume of $804,923,738. Pepe holds the 26th position in CoinMarketCap’s ranking, boasting a market cap of $3,963,148,498.

Recent data indicates that the trading volume for PEPE derivatives surged by 12.07%, reaching $734.26 million. This surge reflects heightened trading activity and renewed interest in the meme coin. However, open interest has seen a slight decrease of 2.05%, now at $108.08 million, suggesting some traders are closing positions despite the increased trading volume.

Profit-Taking Triggers Price Decline

A significant factor contributing to the recent price decline is the high number of investors in profit. According to IntoTheBlock’s data, over 92% of PEPE investors were in profit, leading to increased selling pressure. This profit-taking behavior has resulted in a sharp decline in PEPE’s price, with a 6% drop recorded over the last 24 hours before bullish recovery as of press time.

However, Santiment’s data revealed multiple spikes in PEPE’s exchange inflow over the past week. The supply on exchanges has increased, while the supply outside of exchanges has decreased, signaling a sell-off. Moreover, the supply held by top addresses has dropped slightly, indicating that some large holders, or whales, have sold their holdings, contributing to the initial price decline.

Market Indicators Suggest Bearish Trends

Several market indicators have pointed towards a bearish trend for PEPE. The Relative Strength Index (RSI) has declined to 58.7, and the Chaikin Money Flow (CMF) has also dropped, indicating a potential continuation of the bearish trend. 

Additionally, PEPE’s Social Volume has decreased significantly over the past week, reflecting a dip in its popularity. The Weighted Sentiment has also turned negative, suggesting that investors expect further price declines.

Despite these bearish indicators, PEPE’s price remains above its 20-day Exponential Moving Average (EMA), which might act as a support level if the price decline continues.

Technical Analysis Shows Bullish Potential

On the technical front, PEPE maintains a bullish market structure on higher timeframes. Despite the recent dip, the On-Balance-Volume (OBV) remains in an uptrend, indicating that selling pressure is not yet dominant. The RSI on the daily timeframe, although it has fallen from 72 to 56, still favors buyers. 

Immediate support levels are identified at $0.0000087 and $0.0000078. If the price continues to decline, these levels could be where a reversal occurs. Additionally, a key bullish trend line is forming with support at $0.00000670 on the daily chart. A close below this support could initiate a larger decline, potentially towards the $0.00000480 level.

Whale activity has also influenced PEPE’s price movements. A notable transaction involved a multi-signature wallet depositing 457.9 billion PEPE tokens, worth approximately $4.54 million, to Binance. Despite this, PEPE has maintained a recovery trend supported by an ascending trendline on daily charts. If this trendline holds, along with Bitcoin’s stability above $65,000, PEPE could see a rally towards $0.0000138 and possibly $0.0000167.