PEPE Coin, like the rest of the crypto market, has seen its price beaten down toward June lows once again after an explosive month of July. This has set the meme coin on another bearish path that could end up in a crash of the $0.00001 resistance. However, with the new week, there have been some positive changes, and indicators are starting to point toward a possible recovery that could send the price doubling.
PEPE Enters Consolidation Phase
The PEPE price is trending dangerously close to the $0.00001 support, and even the recent bounce has not been able to completely eliminate the risk of bears pulling it down completely. Crypto analyst MasterAnanda attributes this development to the fact that the entire market is in a retracement, and thus, this is not a decline driven by factors solely unique to the PEPE meme coin.
There is also the fact that the cryptocurrency has been able to hold up quite nicely despite the market decline, suggesting there is still some level of strength in the market. This is shown in the multiple waves of bullish and bearish trends that have been seen so far this year, with a local peak in May, and then another in July.
Despite the decline, the crypto analyst explains that PEPE is actually trading in a very strong structure. This is actually noticeable in the fact that PEPE has managed to remain inside the $0.00001-$0.000011 structure without breaking down completely. Given that June saw a higher low, the analyst believes that this means that it will not make a new low despite the crash.
Another factor that points to a possible upward move for the PEPE price is the fact that volume has dropped quite low. Data from the Coinglass website shows that the PEPE trading volume had peaked as high as $5 billion back in the month of July, during the height of the market rally.
However, since then, there has been a noticeable decline in the daily trading volume for the meme coin. By the start of August, trading volume had already fallen below the $2 billion mark, standing at around $1.2 billion at the time of writing. This translates to a 76% decrease from the July 12 high, less than a month before.
Given that low volumes are often indicative of an end to a bearish trend, it is possible that PEPE will soon reach a bottom before reversing. Another possible scenario outlined by the crypto analyst is that the price could see a flash crash followed by a quick recovery, but both with similar outcomes, which is a price rally.
The PEPE meme coin is also in a consolidation trend after the decline. There have been sideways and mid-range price action that have dominated the altcoin as proof of this consolidation. Since consolidation trends are historically known to end in an uptrend, it is likely that PEPE would see another wave of growth once this consolidation ends.
Featured image from Dall.E, chart from TradingView.com
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