- Summary:
- PEPE price rose by more than 20 percent last week, but once again finds itself unable to drop one decimal point. Is it losing its shine?
PEPE price traded in the red for the second successive day on Monday, further eroding the bullish sentiment created following last week’s rally. The frog-themed meme token was at -2.6 percent on the daily chart at the time of writing, trading at $0.00000890. PEPE finds itself under downward pressure, having run a six-week winning streak last week only to be rejected near the psychological barrier at $0.0000100.
However, its gains in the last week still stand at 21 percent as of this writing, pointing to a potential bullish undercurrent. On the flip side, however, that also predisposes it to downward pressure from profit taking. PEPE price has struggled to replicate its prolonged rallies in February-March and April-May, and has been on a general downtrend on the daily chart since late May, with short-lived gains.
In a market that suddenly finds itself in the middle of an avalanche of meme coins freshly minted from Solana’s Pump.fun and Tron’s SunPump, it will likely become increasingly harder for PEPE to sustain prolonged rallies. That said, PEPE has established itself as a formidable meme coin, being the only other meme coin ranked among the top 30 in terms of market capitalisation, alongside the OG meme coins, Dogecoin and Shiba Inu. That means it has strong community support that could help keep it afloat even as more meme coins come out.
PEPE price momentum
PEPE price broke below the middle Bollinger Band on Sunday, August 25 and has stayed below that level since then, as shown on the 2-hour chart. That signals that the sellers currently have a hold of the market. In addition, the RSI indicator is at 48, which also aligns to the downside narrative.
Support and resistance levels
The 30-minute chart suggests that PEPEUSD will likely continue to the downside if the action stays below the 0.00000901 pivot. With the bears in control, the first support could come at 0.00000885. But, if the downside momentum persists, that level could be breached and the price sent lower to test 0.00000865.
Alternatively, moving above 0.00000901 will put the buyers in control. In that case, we could see the first barrier at 0.00000915. However, if the buyers strengthen the upside momentum, they could clear that barrier and invalidate the downside narrative. Meanwhile, the move could clear the path to test 0.00000930.
