u.today
The crypto market has been hit with a major sell-off, and meme coins are feeling the heat. Frog-themed meme cryptocurrency $PEPE has declined over 26% in the last 24 hours, bringing its overall decrease to a shocking 67% from its all-time high of $0.000028 reached last December.
At the time of writing, $PEPE had slightly pared its losses, down 20% to $0.00000967. Despite the sharp drop, $PEPE's trading volume has increased by 237%, surpassing $3.26 billion in the last day. This spike in trading activity suggests that traders might be repositioning, which could indicate a shift in momentum.
While $PEPE’s price drop might seem concerning, the surge in trading volume could indicate growing interest from traders looking to capitalize on the dip.
Is rebound imminent?
$PEPE has steadily declined since reaching all-time highs of $0.000028 on Dec. 9. The declines brought $PEPE below its daily SMA 50 at $0.00001752 in mid-December, where it remained until late January, before it fell to lows of $0.0000113.
The $PEPE price further declined to slip below the daily SMA 200 at $0.00001328, hence losing key support that has held up its price since November. After three days of rebounding below the daily SMA 200, $PEPE began to decline again, adding a zero to its price tag.
$PEPE plummeted to a low of $0.0000079 today, marking the third day of losses if the session concludes in red.
Having said that, the first sign of strength would be a rebound above the daily SMA 50 and 200, respectively. However, much of $PEPE's potential rebound might depend on broader market conditions. If Bitcoin and other major cryptocurrencies rebound, meme coins such as $PEPE may follow suit.
On the other hand, if selling pressure persists, $PEPE may challenge the $0.0000079 support. A breach below this level may indicate greater downside risk.