PEPE Faces Major Obstacles — $0.000020 Target Still Out of Reach
Key Takeaways
- PEPE’s price has slightly increased but has yet to exit the bearish technical structure.
- On-chain resistance sits around $0.000020, where 75 trillion tokens are yet to breakeven.
- PEPE has formed a head and shoulders pattern, indicating that the downtrend might extend.
Losing the memecoin dominance to Solana was one factor that put the Ethereum-based token Pepe (PEPE) out of the spotlight. The result of this dwindling attention is a decline in demand.
As a result, PEPE’s price is down 50% in the last 30 days. However, the memecoin experienced a mild jump yesterday, similar to the broader crypto market.
Trading at $0.000010, PEPE appears to have shown a glimpse of an extended recovery. However, this analysis reveals it might take a while before the cryptocurrency attains such height.
PEPE Price Near Key Rejection Zone
From an on-chain standpoint, the Global In/Out of Money (GIOM) shows that 41% of PEPE holders are in. profits. However, the metric, which groups address based on profitability, reveals that 51% are holding the memecoin at unrealized losses.
However, the remaining 8% are holding at the same PEPE price range they accumulated. However, apart from disclosing the level of gains and losses in the market, the GIOM also spots resistance and support.
Analyzing the number of addresses in profit or loss can identify potential buying and selling pressure at certain price ranges. Typically, a high concentration of profitable addresses at a certain level indicates strong support, as holders may be reluctant to sell.
However, many addresses at a loss near a resistance level can indicate potential selling pressure. According to IntoTheBlock, the major resistance for PEPE lies between $0.000019 and $0.000021.
As shown above, over 53,000 addresses are holding 75 trillion tokens at a loss. Therefore, if PEPE’s price attempts to reach this point, it could face selling pressure as holders might decide to break even.
The volume at this resistance is also higher than the on-chain support at $0.0000030. Thus, to overcome this hurdle, PEPE has to attract a high level of buying pressure, which looks very unlikely at the time of writing.
Tough Road Ahead for the Meme Coin
According to the daily chart, PEPE experienced a 50% correction due to the head and shoulders formation.
A head and shoulders pattern is a that signifies a potential bullish-to-bearish trend reversal. It consists of three peaks: a higher middle peak (the “head”) flanked by two lower peaks (the “shoulders”).
When the price breaks below the “neckline”—the support level connecting the two shoulders—it confirms the reversal, indicating that bearish momentum has taken over and a price decline might follow.
Based on the image below, the support line sits at $0.000020. But PEPE’s price has broken below the neckline. Hence, the memecoin might experience a further downtrend.
Beyond that, the Awesome Oscillator (AO) is in negative territory. The AO’s position confirms that the momentum around PEPE is bearish.
Should this oscillator reading fail to rise, the meme coin’s price might continue to decrease. If that is the case, the token could decline to $0.0000063.
However, if PEPE reclaims rise above the 0.236 Fibonacci resistance, the trend might change. The cryptocurrency’s value might jump to the neckline at $0.0000020 in that scenario.
