Pepe PEPE, the world’s third-largest stablecoin by market value, has failed to keep gains above the 100-day simple moving average (SMA) amid continued distribution or selling by holders.
The cryptocurrency briefly topped the 100-day SMA at $0.00001009 early Monday before reversing the spike to trade 1% lower at $0.00000992 as of writing, according to CoinDesk data.
Volume patterns suggest distribution rather than accumulation, with four distinct high-volume selling periods creating a descending resistance trendline. This follows significant transfers of coins to exchanges, hinting at potential liquidation by large traders. Recently, whale transfers included the movement of 500 billion PEPE, worth $3.85 million, to Binance, highlighting ongoing volatility in the meme token space, according to CoinDesk’s AI insights.
Broadly speaking, the token remains locked in a sideways range identified by trendlines connecting June 25 and July 3 highs and lows registered on June 22 and July 2. A breakdown of the channel would imply a continuation of the downtrend from May 23 highs.
Key AI insights
- Technical indicators for PEPE remain mixed, with RSI at 44.29 and sentiment classified as neutral.
- The token’s price action during recent hours showed a sharp sell-off with exceptionally high volume, creating a descending resistance trendline.
- Despite these challenges, analysts project significant long-term potential, with some forecasts suggesting PEPE could reach $0.000035 by 2025 and potentially $0.0258 by 2030.
- PEPE coin maintains critical support at $0.00000099 despite profit-taking, forming a consolidation pattern between $0.0000099 and $0.0000102.
- Memecoin sector shows rotation with Bonk surging 6-7% on ETF buzz while Dogwifhat drops 4-10%, testing key support amid declining volume.