Frog-themed memecoin Pepe (PEPE) has hit a snag. The token recently failed to break above a crucial resistance level at $0.000011. This, therefore, sets the stage for a possible price drop.
This analysis dives into what memecoin holders need to know as market activity cools heading into October.
Pepe's bears outnumber bulls
Since June, the $0.000011 price level has served as a crucial resistance point for PEPE. Several attempts have been made to break above this line, but all retests have failed.
Over the past week, PEPE’s price has surged 36%, bringing it closer to resistance. During Sunday’s trading session, it attempted to break through this level but faced increased selling pressure, resulting in a decline.
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Currently trading at $0.000010, the memecoin has seen a 2% drop in the last 24 hours.
The activity of large PEPE holders, who hold more than 0.1% of its circulating supply, may be significant here. Over the past week, this group of holders has been gradually selling off the memecoin, as evidenced by the 171% drop in netflow to large holders of the token.
PEPE Price Analysis. Source: TradingView
In short, when the netflow of large holders of an asset decreases, it means that its whale addresses are selling their holdings. This is a bearish signal, suggesting potential selling pressure and a risk of a price drop.
Netflow of Large PEPE Holders. Source: TradingView
Furthermore, PEPE’s negative Balance of Power (BoP) readings indicate that bears are in control of the market. At -0.54 at press time, the memecoin’s BoP, which measures the ratio between its buying and selling pressure, shows a prevailing bearish sentiment and stronger selling pressure.
PEPE's Balance of Power. Source: TradingView
Price forecast
If the selling momentum picks up, the price could drop by 22% to trade at $0.000008. Failure of the bulls to defend this level and turn it into support is likely to extend the decline by another 32%.
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On the other hand, a resurgence in buying activity could lead PEPE towards the $0.000011 resistance level. Breaking this level would pave the way for a possible climb to $0.000014.
PEPE Price Analysis. Source: TradingView
The article Bears regain control of PEPE and fall is imminent – Analysis was first seen on BeInCrypto Brasil.