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The cryptocurrency market has been witnessing fluctuating trends, and Pepe Coin (PEPE) is no exception. After a notable drop at the end of last month, PEPE managed to spike by 25% recently. However, the momentum appears to be waning over the past day, casting doubts on the sustainability of this rally. On-chain data analysis indicates challenges in maintaining this upward trajectory.
Pepe Coin Analysis
A critical metric for understanding Pepe’s situation is the Mean Dollar Invested Age (MDIA), which measures the average time a cryptocurrency remains in the same wallet. A rise in MDIA implies long-term holding, while a decrease suggests increased activity in previously dormant wallets. According to Santiment, PEPE’s 90-day MDIA was 42.30, but this has recently declined, indicating more active trading and a potential price drop. Access COINTURK FINANCE to get the latest financial and business news.
Moreover, PEPE’s trading volume has diminished to 613.26 million dollars. Generally, a rising volume with a climbing price supports an upward trend. The current decrease in volume after a price surge suggests that the upward momentum may not sustain.
How Much Will PEPE Be Worth?
An analysis of the daily chart shows that PEPE’s price is facing resistance at the 50-day Exponential Moving Average (EMA) zone. This indicator is often used to determine the trend direction. Currently, PEPE is trading just below this level, hinting at a bearish outlook. Conversely, it remains above the 20-day EMA, but recent red candlesticks suggest a possible drop below this short-term trend line.
Additionally, PEPE’s inability to break through the descending triangle formation adds to market concerns. If this pattern persists, the coin might target a lower price level of 0.0000077 dollars. However, should the upward trend resume, PEPE could climb back to 0.0000098 dollars, indicating a potential rise to 0.00001 dollars.
Investor Takeaways
- A declining MDIA suggests increased trading activity and potential price volatility.
- The current trading volume drop hints at weakening upward momentum.
- Resistance at the 50-day EMA points to a possible bearish trend.
- Failure to break the descending triangle formation could lead to further declines.
- Monitoring the 20-day EMA is crucial for short-term trend predictions.
In conclusion, while PEPE has shown some recent gains, several indicators suggest potential challenges ahead. Investors should closely monitor key metrics and market signals to navigate the volatility.