TLDR
- PEPE price fell 17% from its all-time high on May 27, 2024, but found support at $0.000014 on June 4.
- PEPE’s trading volume has declined by $3.1 billion since the correction phase began, a 72% drop compared to the 19% price decline.
- The faster decline in volume compared to price suggests that selling pressure is weakening, signaling a potential bottom and imminent bullish reversal.
- PEPE is approaching a critical support level at the 20-day SMA ($0.0000138), which could attract bulls to enter new positions.
- Despite the recent pullback, PEPE has outperformed major cryptocurrencies like Bitcoin and Ethereum over the past year, yielding a remarkable return of 1,299.26%.
PEPE, the prominent meme coin hosted on the Ethereum blockchain, has experienced a rollercoaster ride in recent weeks.
After reaching an all-time high of $0.0000172 on May 27, 2024, PEPE price tumbled 17% amid a profit-taking frenzy.
However, crucial on-chain insights suggest that the correction phase could be winding down, potentially setting the stage for another rally in June 2024.
PEPE’s impressive performance in May 2024 saw the meme coin close the month with a remarkable 151% growth, climbing more than 10 places in the CoinMarketCap rankings to enter the top 20, with its market capitalization surging above $6 billion.
The all-time high on May 27 marked PEPE’s second consecutive peak in as many weeks, but the subsequent profit-taking wave led to a 19.27% decline from the month’s peak, with PEPE trading at around $0.00000145 on June 5.
Despite the recent pullback, a critical trend observed in the PEPE markets this week suggests that the bottom could soon be in.
The Santiment chart, which tracks the dollar value of all transactions involving a cryptocurrency on a given day, reveals that PEPE’s 24-hour trading volume has declined significantly faster than the price.
While PEPE price has only declined 19% from last month’s market top, the trading volume has recorded a more substantial 72% drop-off, falling from $4.32 billion on May 23 to just $1.27 billion on June 5.
This faster decline in volume compared to price during a correction phase is considered an early signal of an imminent bullish reversal by strategic investors.
It indicates that sellers are increasingly growing unwilling to sell as prices fall further and that most PEPE traders who wanted to book profits have already sold at the top.
With trading volumes down $3 billion in the last 10 days, the selling pressure is evidently weakening, signaling that the market might be approaching a bottom.
Technical indicators also support the idea of a potential bullish reversal. PEPE price is now approaching a critical support territory at the 20-day Simple Moving Average (SMA) price level of $0.0000138. As the retracement from the all-time highs nears the 20% mark, bulls on the sidelines could consider it the perfect timing to enter new positions.
If PEPE price heads into another rally in 2024 as predicted, the current all-time high at $0.00017 remains the main short-term resistance cluster to beat.
With sufficient momentum, PEPE could hit new peaks above the $0.000020 mark in June 2024. However, if bearish momentum intensifies, PEPE could lose the $0.000014 key support level and fall as low as the 50-day SMA at $0.0000010.
Despite the recent pullback, PEPE has outperformed major cryptocurrencies like Bitcoin, Ethereum, and Solana over the past year, yielding a remarkable return of 1,299.26%. This robust performance indicates strong and widespread investor interest in the meme coin.
