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The price of the frog-themed memecoin project Pepe has consolidated within a specific price range over the past few days. Evaluating the price movements on the daily chart reveals the formation of a horizontal channel in which the memecoin project has been trading since July 15. A horizontal channel forms when an asset’s price moves within a specific range for a certain period.
What Is Happening with PEPE?
This horizontal channel occurs when the relative balance between buying and selling pressures prevents the price from showing a strong trend in either direction. The upper line of this channel forms resistance, while the lower line forms support. PEPE has encountered resistance at the $0.000012 level and found support at the $0.000011 level since it started trending in this channel on July 15.
According to on-chain data, there has been a significant decrease in PEPE demand among market participants. IntoTheBlock data reveals a 41% drop in daily active addresses over the past seven days. During the same period, the daily number of new addresses created for memecoin trading decreased by 43%.
Additionally, as the token traded sideways, PEPE whales reduced their risks. This is also reflected in the decrease in the number of large transactions involving the memecoin over the past week.
Large transactions are those where the transferred amount exceeds $100,000. According to IntoTheBlock data, the number of daily PEPE transactions exceeding $100,000 has decreased by 51% over the past seven days.
PEPE Chart Analysis
PEPE could break its current resistance level of $0.000012 if the ongoing bullish trend in the market triggers it. This bullish trend can be inferred from the readings on the SAR indicator. At the time of writing, the points of this indicator are located below the PEPE price.
An asset’s SAR indicator follows price trends and identifies potential reversal points. When the points are below an asset’s price, it is a bullish signal. This suggests that a bullish trend is likely, and investors might consider holding or buying the asset.
If PEPE breaks above the resistance, the next price target could be $0.000013. At the time of writing, the altcoin is trading close to support. If the bulls cannot maintain this level, the price of the memecoin could drop to $0.0000098.
