PEPE maintains sideways trend amid declining demand for meme coins
The price of the PEPE meme coin has stabilized within a price range in the past few days.
Its price movements, evaluated on a daily chart, reveal the formation of a horizontal channel within which the meme has traded since July 15 here.
PEPE bulls and bears engage in conflict
A horizontal channel is formed when asset prices trend within a range for a period of time. This occurs when the relative balance between buying and selling pressures prevents its price from heading strongly in any direction.
The upper line of this channel forms resistance, while the lower line forms support. Since it started trading within this channel on July 15, PEPE has encountered resistance at $0.000012 and found support at $0.000011.
On-chain, there has been a noticeable decline in demand for PEPE among market participants. IntoTheBlock data reveals a 41% drop in daily activity headlines over the past seven days. During the same period, the number of new addresses created to trade the memecoin decreased by 43%.
Furthermore, with the currency trading sideways, PEPE whales reduced their exposure. This is evidenced by the decrease in the number of large transactions involving the meme currency in the past week.
Large transactions are those where the amount transferred exceeds $100,000. According to IntoTheBlock, the number of daily PEPE transactions exceeding $100,000 has decreased by 51% in the past seven days here.
PEPE Price Forecast: A breakout above resistance is possible
PEPE may break through the current resistance level of $0.000012 if supported by the continued bullish sentiment in the market. This bullish bias can be inferred from the readings of its Elliptical Stop and Reverse (SAR) indicator. At the time of publication, the points of this index are located below the price of PEPE.
The Elliptical Stop and Reverse (SAR) indicator for an asset tracks its price trends and identifies potential reversal points. When its points settle below the asset price, it is a bullish signal. It indicates that an uptrend is likely and that traders may consider holding or buying the asset.
If PEPE breaks above resistance, the next price target will be $0.000013.
At press time, the altcoin is trading near support. If the bulls fail to defend this level, the price of the meme coin will fall to $0.0000098.
