PEPE, the popular memecoin, experienced a significant price drop from its all-time high towards the end of May. However, it is now attempting to recover these losses with substantial support from investors. Currently trading at $0.00001163, PEPE shows signs of being above a crucial resistance level, indicating a possible positive shift in its price trajectory. This is further supported by the Chaikin Money Flow (CMF) indicator, which has moved above zero, highlighting a considerable increase in buying pressure.
What’s Happening with PEPE?
The CMF data, which tracks accumulation and distribution over a specific period, indicates that buyers are actively participating in the market. A rise in the CMF above zero signals that the buying volume surpasses the selling volume, reflecting a bullish sentiment among investors.
Alongside the CMF increase, there is a notable shift in the short-term PEPE token supply. These tokens are transitioning to the wallets of medium-term holders, with approximately 7% of the short-term supply now held by these investors.
Pepe Chart Analysis
Trading at $0.00001163, PEPE is attempting to secure support at $0.00001146, which could pave the way for a rise to the next significant resistance level of $0.00001369. This scenario seems plausible if the bullish trend among investors persists. However, if the support breach fails, PEPE’s price might drop back to $0.00001007. Even without a break below this support, $0.00001146 could become a consolidation zone, negating the bullish outlook.
Key Takeaways for Investors
- Investors are showing increased confidence by moving tokens from short-term to medium-term holdings.
- This shift in holding patterns signals a belief in PEPE’s long-term potential.
- Reduced selling pressure and increased holding periods could lead to price stability and further bullish trends.
In conclusion, the current movements and indicators suggest that PEPE may continue to recover if the bullish sentiment among investors maintains. The transition of tokens to medium-term holders and the rise in CMF are strong indicators of market confidence, potentially leading to a more stable and positive price trajectory for PEPE.
