Usman Salis
The popular meme cryptocurrency PEPE has experienced substantial 22.67% growth over the past week, but encountered significant resistance preventing it from eliminating a zero in its valuation.
PEPE Bulls Face Rejection at Key Price Level
PEPE's recent bullish momentum, which saw the frog-themed meme coin gain 22.67% over the past seven days, has hit a significant roadblock. According to CoinMarketCap data, PEPE encountered strong resistance at the critical $0.0000090 price level. Although the cryptocurrency briefly surpassed this threshold, reaching $0.00000902, market conditions could not sustain the upward trajectory needed to officially drop a zero from its valuation.
The rejection at this pivotal price point represents a considerable setback for PEPE holders who were anticipating the psychological milestone of reaching $0.00001. At press time, PEPE is trading at $0.000008772, reflecting the struggle to maintain momentum above the resistance level.
Trading Volume for PEPE Shows Concerning Decline
A particularly troubling development for PEPE's price action is the notable decline in trading activity that coincided with the price increase. While the cryptocurrency was approaching the zero-elimination milestone, trading volume dropped by 13.93% to $747.7 million within the last 24 hours.
This decrease in market participation during what should have been a celebratory price movement suggests hesitation among investors. The lack of trading volume to support the price surge indicates potential uncertainty about PEPE's sustainability at higher valuations, contributing to the pullback from the $0.0000090 resistance level.
PEPE Support Levels and Downside Risks
The current price retraction raises concerns for PEPE investors as it threatens to erode the gains accumulated over the past week. While the current price volatility remains distant from the previous support level of $0.000007181, from which PEPE initially bounced, market analysts warn that a continued downward movement could accelerate rapidly.
If PEPE fails to establish a solid support level as a foundation for a potential rebound, further price deterioration could occur. Market observers are particularly monitoring the $0.0000084 level, as a decline below this point could potentially invalidate the bullish momentum established during the recent rally.
Whale Activity Could Determine PEPE Short-Term Trajectory
The reversal of PEPE's downward trend largely depends on the return of bullish sentiment and renewed interest from significant investors. For the frog-themed meme coin to resume its journey toward eliminating a zero from its value, substantial transaction activity from its most prominent backers will be necessary.
The behavior of PEPE whales will be crucial in determining short-term price action. If major holders refrain from selling large quantities of the token, it could alleviate the selling pressure currently weighing on the price. Conversely, a major accumulation phase by these large-scale investors could provide the support needed to propel PEPE back toward the coveted $0.00001 mark.
Market participants are now closely watching both price movements and on-chain activity for signals of whale behavior that might influence PEPE's price direction in the coming days. The actions of these influential investors could either reinforce the current resistance or help PEPE overcome it, potentially resuming its path toward erasing a zero from its valuation.
Usman Salis
