20% Correction Looms Amid Declining Volume – Crypto News

Pepe Coin Price Analysis: The fourth week of May has been notably bullish for Pepe coin, which saw its price surge from $0.00009 to $0.000016, marking a 79% increase. This rally was primarily driven by the recent approval of spot Ethereum and Bitcoin nearing the $70,000 mark. However, this week, PEPE’s recovery momentum has slowed, accompanied by decreasing trading volumes, indicating the potential onset of a new correction trend.

Also Read: MAGA vs PEPE : Top Reasons MAGA Might Flip PEPE?

PEPE Team Cashes Out $2.28M in Tokens as Price Hits New ATH

An analysis of the daily time frame shows that the PEPE coin price has been riding a steady recovery for the past six weeks under the influence of an ascending trendline. The series of new higher lows indicate an active accumulation trend which uplifted this memecoin from $0.00000393 to $0.000016 recording a 300% jump.

However, with Bitcoin consolidating above $65,000 for over a week, the altcoin market has shown signs of weakening bullish momentum. PEPE coin mirrored this trend, evidenced by the formation of short-bodied candles and decreasing trading volume, indicating a potential slowdown in its upward trajectory.

Moreover, the on-chain tracker’s Spot On Chain reported notable activity involving the PEPE token. The PEPE development team sold 21.49 billion $PEPE ($355K) on Binance and DEXs after the token’s price soared 134% in 30 days to a new ATH. Since late February, the team has sold 282.8 billion $PEPE ($2.28M) at an average price of $0.000008067, often before price drops. Currently, the team holds 2.52 trillion $PEPE ($42.7M).

13 hours ago, @pepecoineth sold 21.49B $PEPE ($355K) via #Binance and #DEX after the price soared 134% (30D) to a new ATH!

Since the price rose in late Feb, the PEPE dev team has sold 282.8B $PEPE at ~$0.000008067 ($2.28M), often before the price dropped 👇

Current holding:… pic.twitter.com/NKm4k0YvnL

— Spot On Chain (@spotonchain) May 28, 2024

If the overhead supply intensifies, the PEPE price could plunge around 20% to revisit the aforementioned trendline. Until this dynamic support is intact, the Frog-themed memecoin could prolong the current uptrend.

Technical Indicator

• Exponential Moving Average: The 20-and-50-day EMA provides additional pullback support to sustain this recovery trend.
• Average Directional Index: An upswing in ADX slope at 44% indicates an exhausted trend that needs minor correction to restore bullish momentum.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.