Popular cryptocurrency meme coin Baby (PEPE) saw its price surge 12% on Tuesday after Elon Musk’s move on X. He changed his display name to “Kekius Maximus” and adopted an avatar of Pepe the Frog, referencing the video game Path of Exile.
However, this initial enthusiasm proved short-lived. As the buzz around Musk’s actions began to fade, Baby has already begun to lose some of its recent gains.
PEPE's Short-Term Rise: Not Thanks to Elon Musk:
On Tuesday, tech billionaire Elon Musk updated his X profile, adopting the pseudonym “Kekius Maximus.” Musk replaced his profile picture with the Pepe the Frog meme with the new name, reimagining the character as a warrior in armor and holding a video game joystick.
This move led to a surge in optimism around PEPE coin, pushing its value up by 12% during the trading session. However, this initial enthusiasm appears to be short-lived, as the meme coin has started to decline. Over the past 24 hours, its value has dropped by 4%.
During that period, PEPE trading volume increased by 31%. When an asset’s price falls while its trading volume increases, it can indicate increasing selling pressure as more participants seek to exit their positions. This suggests that the price growth is driven by mere market speculation rather than actual demand for the asset, and is therefore unsustainable.
Furthermore, the surge in Baby outflows from the spot market reinforces this bearish outlook. According to Coinglass, $6.34 million has been withdrawn from the spot market in the past 24 hours. This is in stark contrast to the $45 million in Baby inflows recorded on Tuesday.
When an asset experiences outflows from the spot market, it means that more of the asset is being sold or withdrawn from the market than is being bought. This indicates a decrease in demand as investors or traders move their holdings away from the asset.
PEPE Price Prediction: The meme coin price may drop to $0.0000017:
On the daily chart, the Baby Super Trend Indicator is above its price, confirming a decrease in demand. This indicator tracks the direction and strength of an asset’s price trend. It is displayed as a line on the price chart, and its color changes to indicate the trend: green for an uptrend and red for a downtrend.
When the price of an asset falls below the super trend line, it indicates bearish momentum in the market. This line acts as a resistance level, making it difficult for the price to break it.
For Baby, this resistance is at $0.000024. If the downtrend continues, the price of Baby Meme Coin may drop to $0.0000017.
On the other hand, Baby price may try to break through the resistance level of $0.000024. If successful, it may reclaim its all-time high at $0.000028.