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Meme Coin PEPE Bounces Off Critical Support  

2 mins
Updated by Bary Rahma
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In Brief

  • PEPE's price trading at around $0.00001200 nearly fell through critical support.
  • The investors in profit that are participating in the network exhibit potential selling.
  • CMF shows outflows reaching a multi-month high, indicating a rise in selling pressure.
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Meme coin PEPE is seemingly bouncing back after charting a series of red candlesticks over the past couple of days.

However, investors’ behavior and market conditions do not appear to support a positive outcome.

Meme Coin Investors Could Opt to Sell

PEPE’s price barely holds above the critical $0.00001146 support level, and it is facing the threat of further decline. This is due to the consistent outflow of money from the asset, which hints at a decline in conviction.

This can be noted in the Chaikin Money Flow (CMF). It is a technical analysis indicator that measures the buying and selling pressure over a specified period. It uses volume and price data to gauge the strength of a market trend, helping traders identify potential reversals and confirm trends.

The indicator is currently at a two-month low, which shows that the outflows are intensifying the selling pressure. 

PEPE Chaikin Money Flow
PEPE Chaikin Money Flow. Source: TradingView

This is substantiated by the behavior of the investors, particularly those who are in profit. Upon observing the active addresses by profitability, it can be noted that PEPE holders noting gains are consistently active on the network. 

This is of concern because such investors tend to sell their assets for profits. Generally, their participation under 25% is relatively less concerning, but more than the threshold is problematic, which is the case with PEPE.

Read More: Pepe: A Comprehensive Guide to What It Is and How It Works

PEPE Active Addresses by Profitability.
PEPE Active Addresses by Profitability. Source: IntoTheBlock

PEPE Price Prediction: Bounce Back?

PEPE’s price, trading at $0.00001195, looks like it is bouncing off the support at $0.00001146. This is a positive development for the meme coin and its investors. However, the latter’s lack of conviction might cost its recovery.

Potential selling, as stated above, may lead to the PEPE price losing this crucial support and falling to $0.00001007.

Read More: Pepe (PEPE) Price Prediction 2024/2025/2030

PEPE Price Analysis.
PEPE Price Analysis. Source: TradingView

On the other hand, a successful bounce-back will enable the PEPE price to rise to $0.00001369. Once this resistance level is broken, the meme coin could continue its rally toward $0.00001600.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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