PEPE Struggles to Break $240 Million Resistance: What’s Next for the Price?
The Frog-themed meme coin, Pepe ($PEPE), has faced a 6.50% decline over the past week, largely due to a significant supply barrier overpowering the coin’s underlying support. Currently, PEPE is trading at $0.0000098, and recent developments suggest the meme coin could face continued downward pressure.
Pepe Hit by a Massive Supply Wall
Data from the In/Out of Money Around Price (IOMAP) indicates that around 5,300 addresses holding 23.84 trillion PEPE tokens accumulated these coins at a price near $0.0000010. This group is now holding at a loss, contributing to a strong resistance level around $0.000010.
The IOMAP tool categorizes addresses as "in profit," "at breakeven," or "out of the money." When a large number of holders are out of the money at a specific price point, it tends to create significant resistance. In contrast, higher volumes of in-the-money addresses form support levels. In the case of PEPE, the volume of tokens held at $0.000010 far surpasses those held at $0.0000090, indicating that the coin may struggle to break through this $0.000010 resistance level.
Another concerning factor is the decline in Network Growth, a key metric that tracks the number of new addresses engaging with the token. An increase in this metric typically signals rising demand, as more participants enter the market for the first time. However, a sustained decrease suggests dwindling interest, which could lead to a drop in demand for PEPE and further hinder price recovery.
PEPE Price Outlook: Potential for a 28% Decline
A closer examination of the PEPE/USD daily chart reveals that the Moving Average Convergence Divergence (MACD) indicator has entered negative territory. The MACD tracks price momentum by calculating the difference between two key exponential moving averages (EMAs), typically the 12-period and 26-period EMAs. A negative MACD indicates bearish momentum, reinforcing the possibility of further price drops.
With this bearish signal in place and the supply wall holding strong, PEPE could face a potential 28% price decrease if these trends continue.
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