Pepe (PEPE) has faced significant price action recently, with the memecoin experiencing a 12% drop in just 24 hours. This decline halted a promising uptrend that appeared to be recovering losses from mid-December.
The bearish momentum stemmed from broader market signals, causing PEPE to lose critical support. Despite this setback, PEPE investor optimism could limit the coin’s downside potential.
PEPE investors are maturing
Short-term holders (STH) of PEPE have shown remarkable resilience by becoming medium-term holders (MTH) rather than selling during the dip. Over the past two weeks, STH concentration has fallen from 48% to 19%, a substantial decrease of 27%. This shift demonstrates that many investors are optimistic about the memecoin’s long-term prospects, opting to hold onto their positions rather than exit.
This maturation among PEPE holders suggests growing confidence in the token’s recovery potential. Such sentiment is crucial to maintaining price stability as it mitigates panic selling during bearish phases. It also indicates that a strong base of committed investors supports the cryptocurrency.
PEPE Supply Distribution. Source: IntoTheBlock
However, PEPE’s macro momentum has taken a bearish turn, as highlighted by key technical indicators. The Moving Average Convergence Divergence (MACD) is close to observing a bearish crossover, signaling the end of the recent bullish momentum. This development follows a brief bullish crossover that occurred earlier, further emphasizing the current downward pressure.
This shift in momentum is in line with broader market conditions, which appear to be weighing heavily on memecoins like PEPE. If these bearish signals persist, they could further suppress PEPE’s price, challenging its ability to recover in the near term.
PEPE MACD. Source: TradingView
PEPE Price Forecast
PEPE is currently trading at $0.00001823 after falling 12% over the past day. This decline occurred after the coin lost its support level of $0.00002062, highlighting the impact of the bearish market environment.
If the bearish signals continue, the coin could decline further to test lower support levels at $0.00001785 and $0.00001696. Such a scenario could extend losses and delay any potential recovery efforts. However, a shift in the broader market sentiment to bullish conditions could provide the much-needed momentum for a recovery.
PEPE Price Analysis. Source: TradingView
In the event of a recovery, PEPE recovering US$0.00002062 as a support level would be essential. This move would invalidate the bearish outlook and help memecoin recover the 12% loss suffered in the last 24 hours. Such a recovery would reaffirm investor confidence and set the stage for additional upward momentum.
The article Major PEPE holders resist the sale; understand the reason was first seen on BeInCrypto Brasil.
