PEPE, a popular memecoin, encountered significant challenges in maintaining its market position recently. After failing to hold onto the critical price point of $0.00000581, PEPE experienced a sharp decline, losing nearly half its value within five days, primarily between April 11 and April 13.
Despite this downturn, the cryptocurrency managed a notable recovery, surging 33% from its lowest point on April 13. PEPE completed this bounce-back in just over 32 hours and is currently trading at $0.000005544. This swift change in fortune highlights the coin’s volatility and marks an opportunity for keen traders.
Analysis from the renowned crypto analytical platform, Santiment, shed light on the broader trends affecting PEPE. Since mid-March, the coin has been on a downward trajectory, retracing the gains from a robust performance in late February. Nevertheless, an interesting development was noted in the network’s mean coin age, which has been on an upward trend, suggesting an ongoing accumulation of PEPE across the network.
This trend was further corroborated by spikes in the age consumed metric, particularly notable on April 4, and previously on March 26 and 27. These movements indicate significant token transfers, suggesting that while some holders were selling in panic, others remained steadfast, continuing to hold their coins amidst the volatility.
The seven-day weighted sentiment remained positive, offering a glimmer of hope despite the possibility of further declines, as suggested by technical analyses. PEPE’s price action has been bearish in shorter timeframes, and the market structure appears weak. However, a bullish bias was still observable in the 12-hour chart trends.
Technical indicators such as the Relative Strength Index (RSI), which stood at 33, and a fall in the On-Balance Volume (OBV) below a crucial support level last month suggest that downward momentum might persist through April, potentially pushing PEPE to 78.6% retracement level at $0.00000318.
Additionally, the liquidation heatmap indicated minimal liquidation above current market prices, with the $0.00000245 level emerging as a potential new low. Nevertheless, should Bitcoin find its footing at a local bottom, there might be room for PEPE to rally again.
Given the current state of the market, it is difficult to predict with certainty the future trajectory of PEPE. However, based on the available data and analysis, it appears that there may be a favourable opportunity for short-term investment in the coin. By taking a strategic and informed approach, investors may be able to capitalize on the unique dynamics of the PEPE market to generate significant returns in a relatively short period of time.
