- Rising volume combined with the price decrease might drive a lower value for the memecoin.
- If a reversal occurs, PEPE could jump to $0.000014.
The last seven days have been tough for memecoins including Pepe [PEPE]. According to data from CoinMarketCap, the price of the token was $0.000012.
This represented a 15.92% decrease in the last seven days.
However, it does not seem like things would change for the better. One reason for this could be linked to PEPE’s increasing volume.
At press time, the was $1.22 billion. An increase in volume means that interest in a particular cryptocurrency is increasing. On the other hand, a decrease in volume suggest less buying and selling.
No way ahead for the memecoin
If volume increases alongside the price, it means that there is a lot of buying going on. In this case, the uptrend could be strengthened.
However, while PEPE’s volume increased, the price fell, indicating that the downtrend could get stronger. If this continues, the price of the token might tumble, and a target of $0.000020 could be possible.
Source: Santiment
A few days ago, AMBCrypto reported that whales were buying the dip. In non-crypto terms, a whale is an individual that possesses large quantities of a cryptocurrency.
Because of their large holdings, whales have the capability to influence price significantly. However, the effect of the accumulation has yet to reflect on the memecoin’s price.
As a result, we went ahead to check if selling was still intense or not. To do this, we looked at the exchange flow.
According to Santiment, the exchange inflow was 5.63 billion. On the other hand, PEPE’s exchange outflow was $5.67 billion. Exchange Inflow tracks the number of tokens sent to exchanges.
An increase in the Exchange Inflow, most times, lead to a price decrease. However, if the exchange outflow increases, it means market participants are choosing to hold the cryptocurrency.
Source: Santiment
Hence, the difference in the inflow and outflow was minimal. Therefore, the token might not undergo another correction.
PEPE’s price eyes $0.000010
As such, PEPE might not fall below $0.000010. However, if the market condition gets overheated, bearish forces might lead the price lower.
From the technical perspective, AMBCrypto analyzed the token on the 4-hour chart. First off, we looked at the Fibonacci retracement tool, which shows a specific support and resistance point.
This could be vital to the price movement of the token. At press time, the 0.236 Fibonacci level was at $0.000010. This was a support level for PEPE, and indicates that the price might drop to the region.
This was also supported by the Moving Average Convergence Divergence (MACD). At press time, the MACD was positive.
Source: TradingView
Read Pepe’s [PEPE] Price Prediction 2024-2025
But the 12 EMA (blue) and 26 EMA (orange) were in the negative region, implying that the momentum was not completely bullish.
However, if buying pressure increases, PEPE’s price could key into the $0.000014 resistance where the 0.618 golden ratio resided.
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