By
Bhushan Akolkar
May 16th, 2024
For the bulls to regain control in the short term, they must gather sufficient momentum to overcome the resistance level at $0.0000075 and successfully confirm it as a support level through a retest.
The Ethereum-based memecoin, PEPE, has recently entered a phase of price consolidation. Following a bullish rally in late February and early March, the coin has encountered challenges in sustaining its upward momentum and has instead been trading sideways.
In mid-March, PEPE reached its all-time high of $0.000011, marking a significant milestone for the memecoin as it showed the increasing interest and speculation surrounding digital assets of this nature. However, the euphoria was short-lived, as PEPE swiftly experienced a sharp decline of approximately 41% within a brief span of time.
Critical Support Must Hold First
Despite the efforts of bulls to stage a recovery from the price dip, persistent selling pressure from bears has caused the coin to decline by over 25% in the past five days. The price of PEPE has been trading around the critical support level of $0.0000064, a pivotal juncture that could dictate its short-term trajectory. If the selling pressure persists without respite, there is a possibility of breaching this support zone, potentially triggering a bearish trend.
On the other hand, for the bulls to regain control in the short term, they must gather sufficient momentum to overcome the resistance level at $0.0000075 and successfully confirm it as a support level through a retest.
Compounding PEPE’s challenges is the recent takeover by dogwifhat as third largest memecoins in market capitalization. As a result, PEPE has slipped to the fourth spot. Given that WIF continues to demonstrate strength without any apparent signs of slowing down, PEPE may find itself entrenched in this position for a considerable period or potentially slide further down the rankings.
Another Glimmer of Hope for PEPE
Interestingly, PEPE appears to be mirroring the trajectory of its mother coin, Ethereum (ETH). During the period when PEPE reached its all-time high, ETH was also on a notable bullish run, accompanied by a positive market sentiment for most major cryptocurrencies. However, while ETH is presently trading sideways, there are predictions that a successful breach of its nearest resistance levels and a subsequent continuation of its upward movement may have a ripple effect on PEPE. This could potentially result in PEPE re-entering a bearish downtrend.
Despite the decline, some analysts remain optimistic, considering this time as an opportune moment to purchase the coin. They associate this opportunity with the upcoming Bitcoin halving, which is anticipated to impact the upward trajectory of altcoins.
In a poll conducted by crypto analyst Davie Satoshi, assessing the potential for a tenfold increase in market capitalization compared to the present, PEPE emerged as the frontrunner, surpassing WOLF BRETT and ANDY with a commanding 57% of the votes. This achievement led Davie to bestow upon PEPE the title of the memecoin king, surpassing its competitors.
It is clear $PEPE is king but many believe $ANDY (on Eth) can also 10x compare to the rest of the Boy's Club. pic.twitter.com/uokIoYX1GD
— davie satoshi (@NFTdavie) April 5, 2024
Irrespective of individual perspectives, the recent price fluctuations of this frog-themed meme coin have garnered significant attention within the crypto community. Should the coin surpass its current resistance level and experience a breakout, it may set the stage for another bullish rally.