With the meme coins turning green, PEPE, a frog-themed meme coin is hinting at a massive rally. However, the new developments from the PEPE team hints at a potential incoming threat for HODLers. Is the meme coin destined to the moon or a 40% downfall inevitable?
As Bitcoin BTC $89 159 24h volatility: 0.4% Market cap: $1.78 T Vol. 24h: $22.01 B hangs near the $105,000 mark, the meme coin segment is on a recovery rally. The total market cap of the meme coin segment has reached $93.60 billion. Amid the recovering rally, PEPE PEPE $0.000004 24h volatility: 2.5% Market cap: $1.88 B Vol. 24h: $220.57 M comes as the top meme coin performer with a 2.78% rise in the past 24 hours.
Nearing the $5.5 billion market cap, PEPE currently trades at a market price of $0.000013. With an intraday recovery of 5.34%, followed by the 8.26% jump yesterday, PEPE is on the verge of creating a V-shaped recovery.
PEPE Price Analysis Reveals Double-Sided Edge
In the daily chart, the PEPE price action reveals a sudden reversal from $0.00001143, with two consecutive bullish candles. The meme coin is on the verge of undermining the bearish engulfing candle of a 12% drop formed on January 28.
Photo: TradingView
Furthermore, the recovery action has surpassed the 38.20% Fibonacci level at $0.00001256. However, the recovery action also hints at a potential retest of the local support trendline.
The PEPE price action analysis hints at a potential reversal before crossing above the 50% Fibonacci level at $0.00001448. In such a case, a bearish continuation will likely breach the $0.000010 psychological mark.
Furthermore, the immediate support level beyond the psychological mark remains at $0.000007913. Hence, the price action analysis hints at a potential drop of 40% if the buyers fail to sustain the momentum.
On a positive note, as the broader market recovers, crossing above the 50% Fibonacci level will likely challenge the local support trendline near the $0.000018 mark. Beyond this, a breakout rally can propel the meme coin price to $0.00002652.
PEPE Team Token Movements Raise Concerns
Amid the rising risk in the PEPE price action, the PEPE team has made a significant move in their token allocation. From a multi-signature wallet, the team behind PEPE coin has transferred 170 billion tokens worth $2.17 million.
The multi-sig wallet of PEPE team (@pepecoineth) transferred 170B $PEPE ($2.17M) to a new wallet “0x1ec” 2 days ago.
In the past 15 hours, this wallet has transferred 6B $PEPE ($76.65K) to #Binance!
Follow @spotonchain and check out this PEPE team-linked wallet at… pic.twitter.com/419GgX8fYa
— Spot On Chain (@spotonchain) January 30, 2025
The transfer shifted the 170 billion tokens to a new wallet (0x1ec) two days ago. Furthermore, in the past 15 hours, the new wallet has transferred 6 billion PEPE tokens worth $76.65K to Binance.
With the PEPE team members likely going on a selling spree, the sentiments are likely to turn gloomier for the frog-themed meme coin.
On-Chain Analysis: Strong Support Levels Identified
Amid the increasing chances of a bearish continuation, the On-chain analysis reveals strong support levels for the frog-themed meme coin between $0.000011 and $0.000013.
Using the In and Out of the Money Around the Price indicator from IntoTheBlock, a huge allocation of ETH tokens at the mentioned support levels makes it a potential bounce-back zone.
Currently, it holds 30.49 trillion PEPE tokens in 32.71K addresses. This highlights strong support compared to the 17.95 trillion PEPE token supply near $0.000014 and $0.000015.
Hence, the strong support is likely to hold the memecoin above the psychological mark of $0.000010.