The crypto market is having a hard time gaining positive movement, and meme coins are particularly suffering. This has caused the price of PEPE to stabilize within a bearish region for an extended period. Also, on-chain metrics indicate a possible 20% drop in value because buyers couldn’t overcome resistance levels.
Pepe’s Volatility Faces Steady Decline
The frog-themed meme coin Pepe (PEPE) experienced a severe drop over the past month. After reaching a high of $0.000028, its value fell by 45% in just 30 days.
This sharp decrease in price has led traders to rapidly reduce their investments in it, similar to their actions with other assets in the market. Data from Coinglass shows that Pepe witnessed a total liquidation of around $1.6 million. Of this, buyers closed nearly $1.1 million long positions.
Glassnode, a platform for on-chain analytics, reports that PEPE has undergone significant deleveraging, with a steep decrease in Futures Open Interest from previous highs in the meme coin market.
There’s a recurring trend where open interest drops following periods of high demand in meme coins. This drop not only highlights a decrease in leverage but also points to a changing attitude towards meme coins.
For example, PEPE’s price has fallen 45% this month, and its futures open interest has dramatically fallen by 75%, from $1.25 billion to $249 million. According to data from IntoTheBlock, there has been a decrease in the volatility of Pepe’s price, dropping from a high of 132.5% to 113.4% over the last week. This decline in volatility could keep Pepe in bearish territory, making it challenging for the meme coin to surpass the $0.00001 mark.
On a different note, whale involvement in Pepe has seen a notable increase recently. The number of large transactions escalated from a low of 105 transactions to a high of 289 transactions last week. This increase in whale activity, while Pepe’s price is consolidating, might pave the way for a potential breakout, either upwards or downwards.
What’s Next for Pepe Price?
Meme coin enthusiasts are finding it challenging to drive the price of Pepe above the moving averages, suggesting a falloff in demand at higher prices. Currently, Pepe price is struggling below $0.00001 as bearish domination rises above that level. As of writing, Pepe price trades at $0.00000929, rising over 0.8% in the last 24 hours.
On the downside, if the price falls below $0.000008, bears could gain control, potentially sending the PEPE/USDT pair down to the crucial $0.0000059 support level. Buyers are likely to aggressively protect this level, as a breach and close below would trigger intense long liquidation.
However, if the price rebounds from $0.000008 or breaks above $0.00001 from the current position, it would indicate a comeback of bullish momentum. This could send the pair towards $0.0000111, and possibly extend gains to $0.000015.
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