Pepe the Frog Memecoin Suffers a 26% Drop as Broader Market Turns Bearish
- 王林Original
- 2024-08-06 03:07:08750browse
The broader market is facing a bearish wave which is pushing the price lower eroding the gains obtained in the last couple of weeks.
The broader market sell pressure continued to push prices lower on Monday, eroding gains seen in the last couple of weeks. As the crypto markets turned bearish, major cryptocurrencies faced strong selling including Pepe.
PEPE, the third largest memecoin suffered a significant drop of nearly 26% in the last five sessions. The weakness has triggered a selloff in the meme coins as well, which performed extremely well in the previous months.
The recent selloff has triggered an uncertainty among the investors. Hence it’s worth having a closer look at the price trajectory of memecoin to see whether the current state may continue to prevail or reverse.
Increasing User Engagement Could Propel Pepe Price Higher
PEPE stands out in the meme coin market by leveraging the legacy of Pepe the Frog, a character with a rich and controversial history. The project’s commitment to honoring this iconic figure sets it apart from other cryptocurrencies, enhancing its appeal within the crypto community.
Despite a drop in the price, analysts have noted a positive development in on-chain metrics: daily active address. As per analysts, the 24 hours active address as well as 7 day active addresses have recorded an upward trajectory in recent sessions.
The increasing number of active addresses highlights the rising user engagement in crypto. The active address metrics reflect the total number of unique addresses that have taken part in transactions within the stated time frame.
Will Pepe Bounce Back or Suffer More?
The daily chart highlights a sharp selloff in the recent sessions. PEPE is on a 5 day losing streak snapping off nearly 26%. Moreover, the reading volume contracted by 10% to 792.8 Million intraday.
From a technical standpoint, PEPE fell below the 20 and 50 day EMAs, suggesting a weak outlook in the short term. However, the long term trend still supports the buyers side as the price currently leads the 200 day EMA by 3%.
On the lower side, the 200 day EMA and $0.0000084 may act as a crucial level for the crypto. Now, if the bulls establish their presence near the support zone, then pepe may take a rebound and recover the losses.
On the contrary, if the selling pressure continues to dominate and the sellers drive the price below the recent support of $0.0000084 it may widen the losses and the crypto may suffer again.
What’s Next For Pepe?
Recently, the broader market’s bearish trend has triggered a selloff in the market. Pepe, the third-largest memecoin, experienced a drop of 26% over the last five sessions.
Despite this, on-chain metrics show a rise in daily and weekly active addresses, indicating high user engagement.
Furthermore, the daily chart reveals a sharp selloff, with Pepe breaking below the 20 and 50-day EMAs, suggesting short-term weakness. Still the price was maintained above the 200-day EMA, indicating long-term support.
Key support levels are at the 200-day EMA and $0.0000084. If bulls hold these levels, a rebound is possible. otherwise, further losses may occur.
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