PEPE has recently tested a short-term ascending support line following its latest pullback. We're examining whether demand is building at this pivotal level. Currently, PEPE is in a crucial area that could influence its short-term outlook. Over the past two weeks, the memecoin has struggled to sustain the bullish momentum it generated in September.
However, could the bulls stage a comeback to continue that upward trend?
Despite losing its September gains, PEPE may still maintain a bullish bias for a short-term rally. It has just retested the ascending support line that reflects its performance from September.
PEPE traded at $0.00000.935 at press time after a 2.63% upside in the last 24 hours. This suggested that the short term ascending trend line was still in play, hence the marketâs bullish reaction to the retest.
The latest pullback pushed PEPE down to its 50% RSI level. So far, the RSI indicator has signaled a potential pivot and remained slightly above this zone.
Once again, this was confirmation that the bullish momentum was still at play.
The above observation underscores the importance of the memecoinâs current position. More upside is likely if it can sum up enough demand.
On the other hand, there was a significant probability of more price weakness if the bears launch a solid assault, coupled with low demand.
Assessing the state of PEPEâs demand
The first stop was an assessment of whale activity, since they tend to have the biggest impact on price action. Large holder flow data revealed declining whale activity since the start of October.
The latest data on the 9th of October revealed that large holder addresses received 2.96 trillion PEPE, while 3.17 trillion PEPE moved out.
The large holder flows data revealed that outflows were slightly higher. However, that may have changed in the last 24 hours, during which the price pulled off a bit of an uptick.
On-chain volume also demonstrated a slowdown in activity in the last three days. Sell volume was notably dominant, which was in line with the sell pressure observed during the same period.
However, the latest data revealed that PEPE buy volume was slightly higher than sell volume.
