Amid a lack of bullish momentum, the massive supply clouding the PEPE price trend warns of a drop under $0.000020.
As Bitcoin stabilizes above the $106,000 level, the meme coins struggle to regain bullish momentum. The top names like Dogecoin DOGE $0.41 24h volatility: 2.7% Market cap: $60.21 B Vol. 24h: $4.37 B , Shiba Inu SHIB $0.000027 24h volatility: 1.6% Market cap: $16.14 B Vol. 24h: $876.81 M , and Pepe PEPE $0.000023 24h volatility: 1.2% Market cap: $9.87 B Vol. 24h: $3.04 B have witnessed a minor recovery of 1.0% to 2.2% over the past 24 hours.
Currently, the Pepe coin struggles to reclaim its $10 billion market cap as weekly returns are down to 4.97%. Will a broader market recovery push Pepe’s price to a new all-time high?
In the daily chart, the Pepe price action reveals a sideways trend. The bullish fort at $0.00002311 supports the consolidation phase.
With multiple lower price rejection candles within this range, the Pepe coin sustains dominance above the $0.000023 level while witnessing a surge in supply pressure. Based on the prevailing price trend, the Pepe rally is making a higher low formation and retesting the previous swing high.
Currently, the meme coin trades at $0.00002345, with a negligible intraday move after yesterday’s 2.92% drop. Using the trend-based Fibonacci levels, the Pepe price action reveals the consolidation range, taking support from the 23.60% level as well.
Despite the lower price action in the consolidation range, the daily RSI line maintains a declining trend. Furthermore, the lack of bullish divergence warns of a bearish continuation as it nears the halfway line.
Amid the consolidation range, the 20-day EMA line acts as a dynamic support, holding and absorbing the supply spikes. Meanwhile, the 50-day, 100-day, and 200-day EMA lines maintain a positive alignment and are ready to act as dynamic support levels. Further, the nearest dynamic support is firmly positioned at $0.00001929.
As the consolidation range grows intense, the in-and-out-of-the-money around the price indicator from IntoTheBlock highlights massive supply overhead. Based on this indicator, the immediate out-of-the-money range between $0.000023 and $0.000024 accounts for a massive incoming supply of $21.36 trillion.
This massive supply is held by 12.61k addresses, potentially booking profits. Despite the massive overhead supply, the indicator reveals that 78.95% of the volume around the price remains “in the money.”
Further, the positive “in the money” zone holds 132.51 trillion Pepe worth $3.08 billion. Meanwhile, the “out of the money” zone holds 35.3 trillion Pepe tokens worth $821 million.
Using the trend-based Fibonacci levels, a bullish recovery will likely face opposition at the 38.20% Fibonacci level at $0.000027762. In the case of an extended rally, the 61.80% and 78.60% levels, at $0.00003583 and $0.00004297, are potential price targets.
Conversely, a bearish continuation resulting in a failed retest will test the bullish dominance at the $0.000020 psychological mark and the horizontal support level at $0.000018366.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
