beincrypto.com
Although PEPE had a sluggish start this month, its price still managed a 25% increase. However, the bullish momentum around the meme coin has waned over the last 24 hours, raising questions about the sustainability of its recent rally.
According to several key on-chain metrics, PEPE may struggle to maintain this momentum.
Pepe Investors Put More Tokens in Circulation
A key metric suggesting this is the Mean Dollar Invested Age (MDIA), which tracks the average period a cryptocurrency has been in the same wallet.
When the MDIA increases, holders keep the same tokens in the same wallet. Conversely, a decreasing MDIA indicates that previously dormant wallets are now moving back into circulation.
Read more: 5 Best Pepe Wallets for Beginners and Experienced Users
While the former is a bullish sign, the latter is a bearish one. According to Santiment, PEPE’s 90-day MDIA was 42.30. At press time, it had decreased, indicating rising trading activity and a potential price drop.
Additionally, trading volume has declined, currently sitting at $613.26 million. Typically, rising volume alongside a rising price strengthens the uptrend.
However, when volume drops after a notable price increase, it suggests that the upswing may not persist.
PEPE Price Prediction: Critical Resistance Close
According to the daily chart, PEPE’s price faces resistance around the 50-day Exponential Moving Average (EMA), shown in yellow. The EMA indicates a cryptocurrency’s trend direction. Currently, the meme coin trades slightly below this level, suggesting a potential bearish trend.
However, the price remains above the 20-day EMA (blue). Given the recent red candlestick, there’s a risk of the price falling below this shorter-period indicator.
Additionally, the token is yet to break above the descending triangle pattern. If this continues, the frog-themed meme coin could see a price drop, with the next target near $0.0000077.
Read more: What Are Meme Coins?
This outlook could change if crypto whales start accumulating the token in large volumes. In that scenario, PEPE might break above the descending triangle, potentially reaching $0.0000098.