beincrypto.com
Frog-themed meme coin Pepe (PEPE) has hit a roadblock. The token recently failed to break through a crucial resistance level at $0.000011, potentially setting the stage for a significant price drop.
This analysis dives into what PEPE holders need to know as market activity cools as we enter October.
Pepe Bears Overpower the Bulls
Since June, the $0.000011 price level has served as a crucial resistance point for PEPE. A series of attempts to break above this line have been made, but all retests have failed.
Over the past week, PEPE’s price has climbed by 36%, bringing it closer to the resistance. During Sunday’s trading session, it attempted to breach this level but faced increased selling pressure, resulting in a decline. Currently trading at $0.000010, the meme coin has noted a 2% price drop over the past 24 hours.
Read more: How To Buy Pepe (PEPE) and Everything You Need To Know
The activity of PEPE’s large holders, who hold more than 0.1% of its circulating supply, may be noteworthy here. Over the past week, this group of PEPE holders has gradually sold their coins, as evidenced by the 171% decline in the token’s large holders’ netflow.
When an asset’s large holder netflow declines, its whale addresses are selling their holdings. It is a bearish signal, suggesting potential selling pressure and a risk of price decline.
Furthermore, the negative readings from PEPE’s Balance of Power (BoP) indicate that the bears have market control. At -0.54 at press time, PEPE’s BoP, which measures the relationship between its buying and selling pressure, shows a prevailing bearish sentiment and stronger selling pressure.
PEPE Price Prediction: All Roads Lead Downward
If selling momentum heightens, PEPE’s price may drop by 22% to trade at $0.000008. Failure by the bulls to defend this level and turn it into support would likely extend the decline by an additional 32%.
Read more: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users
On the flip side, a resurgence in buying activity may drive PEPE toward the $0.000011 resistance. Breaking through this level would pave the way for a potential climb to $0.000014.