Despite an overall positive shift in the cryptocurrency market, as Bitcoin surpasses $100k, the cost of Pepe Coin continues to face pressure. Its momentum has slowed down, and recent figures suggest a decrease in its trading volume and social influence. As a result, one might wonder how these underlying factors could potentially impact the price of Pepe Coin.
Is Pepe Coin Price At Risk As Volume And Social Dominance Falls?
As a researcher, I’ve observed a declining trend in the daily trading volume of Pepe Coin, which correlates with its price losing momentum. Specifically, data from CoinGecko indicates that the daily volume plummeted to approximately $1.4 billion on Tuesday, marking a significant drop from over $18 billion in November. This decline has brought the daily volume to its lowest point in more than two months.
Based on new data from LunarCrash, it seems that social dominance has seen an uptick lately, but it’s still substantially below its peak from last year. This suggests that there might be a decrease in the number of people discussing Pepe coin online.
In theory, when a cryptocurrency’s trading volume and social influence decrease, it might signal a bearish trend because it suggests declining interest. But in practice, a significant drop can actually be positive since it often indicates that astute investors are amassing the currency.
Pepe Price Technical Analysis As Chart Sends Mixed Signals
The daily price chart for Pepe presents conflicting indications. On one hand, it’s encouraging to note that the token has maintained its position above both the 50-day and 100-day moving averages. Furthermore, it has exhibited a ‘break and retest’ pattern, dipping to a crucial support level at $0.00001751 – a price point that was also the highest in May 2024 and forms part of an upward ‘cup and handle’ pattern. A retest like this is usually interpreted as a positive sign in the market, suggesting continuation.
On a downside note, the price of Pepe Coin has been gradually forming an ascending wedge chart pattern since December 20. This pattern consists of two lines that are moving upwards and converging towards each other. Such a pattern usually culminates in a bearish breakout when these trendlines reach their convergence points.
Observing from afar, it appears the coin could be shaping up as a head and shoulders chart configuration. The peak, or ‘head’, sits at approximately $0.0000283, whereas the potential ‘right shoulder’ lies around $0.000025. The ‘neckline’ is estimated to be at roughly $0.000017. Similar to the wedge pattern, a head and shoulders formation is usually interpreted as a bearish sign. This pessimistic perspective aligns with our current projection for the Pepe price trend.
Pepe Token Price Targets
Consequently, Pepe could potentially move in either direction right now. However, it appears that the rising wedge pattern might play out, leading to a decrease in the token’s value towards the support level at approximately $0.00001715.
If the token surpasses its ‘right shoulder’ value at $0.000026, it would indicate a full bullish breakout. This action would negate the ‘head and shoulders’ pattern, suggesting potential increases in the future.
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2025-01-07 19:10