Pepe Coin Faces Third Day of Pullback After New All-Time High. What’s Next?

Pepe Coin Faces Third Day of Pullback After New All-Time High. What’s Next?

Pepe (PEPE) has been experiencing a significant pullback over the past few days, with its price dropping to $0.00001352 as of press time, a decrease of 11.78% in the last 24 hours. This marks the third consecutive day of bearish movement for the memecoin, following its recent high of $0.00001725 on May 27th. Its Market cap is currently at $5.6 billion, while its trading volume in the last 24 hours has increased by 6.7% to record $2.2 billion.

PEPE Price Chart: CoinMarketCap
PEPE Price Chart: CoinMarketCap

What Does PEPE Technical Analysis Show?

Pepe's bullish momentum, which saw its price surge by 339% from a low of $0.00000393 on April 13th to its all-time high on May 27th, is now facing a challenge. The price is currently on a downtrend, the third consecutive day, possibly heading towards filling a fair value gap left on May 20th and 21st. Technical indicators suggest that the price might test the horizontal support level at $0.00001086 before resuming its bullish trend. 

PEPEUSD Daily Chart: TradingView
PEPEUSD Daily Chart: TradingView

The weekly Relative Strength Index (RSI) has dropped to 71, down from an overbought level of 83 four days ago, indicating increasing bearish momentum. The daily RSI also reflects this sentiment, currently sitting at 57. This suggests that while the market is still relatively strong, the bears are gaining control in the short term.

How About On-Chain Metrics?

On-chain metrics provide further insight into Pepe's current market dynamics. Data from Santiment shows a slight increase in the supply of PEPE on exchanges over the past few days, a bearish signal indicating that more investors are looking to sell. 

Source: Santiment
Source: Santiment

Also, Coinglass's 24-hour long/short ratio chart reveals a sharp decline in long positions since May 25th, with a significant increase in short positions. This shift suggests that traders are betting on a further decrease in Pepe's price in the near term.

Source: Coinglass
Source: Coinglass

Despite the recent pullback, the overall direction for Pepe remains positive. The total number of holders continues to grow as shown in the santiment chart above, showing that many investors are optimistic about the token's future prospects. 

This long-term bullish sentiment is reinforced by CoinCodex's prediction, which forecasts a potential surge of 230.59% in June, with the price possibly reaching $0.00005341 by June 27, 2024. The current market sentiment is bullish, with a Fear & Greed Index reading of 72 (greed). The token has recorded 19 green days out of the last 30, indicating a 63% success rate and 27.28% price volatility.

What’s Next?

Looking ahead to June, the outlook for Pepe appears particularly favorable. According to CoinCodex, the token may experience a significant price increase, potentially reaching a new price level of $0.00005341. This forecast is supported by technical indicators and market sentiment, which suggest a bullish trend despite the recent pullback. However, the coin may face initial resistance at certain price levels, but the overall trajectory for June 2024 remains optimistic.

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