Even though there’s significant accumulation happening in the Bitcoin and altcoin markets, this trend hasn’t quite caught on within the memecoin sector. The prominent memecoin, Pepe, is currently experiencing downward pressure around its resistance points, with key on-chain indicators pointing to a dominance of sell-offs. Nonetheless, with the volatility of Pepe coin hitting a four-month high, there’s an increasing anticipation of a buying demand in the coming days.
Pepe’s Volatility Holds Strong Despite Drop In Active Address
Despite Pepe coin achieving an impressive 60% increase in October, it hasn’t maintained this momentum into November, facing several resistance points. Consequently, the price of Pepe coin has seen less than a 1% rise in the opening week of the month, indicating a slowdown in the rally of memecoins.
This bearish moment can primarily be due to a steady decrease in the number of active addresses. According to IntoTheBlock data, the count of active Pepe addresses has declined over the last week. The daily count of active addresses dropped from a peak of 3,700 to just 2,020. This trend indicates that investors may be liquidating their Pepe holdings to invest in trending altcoins, following Pepe’s inability to fulfill its bullish expectations.
Moreover, the sentiment among traders is shifting towards bearish positions, as seen by the long/short ratio’s downturn. The indicator has dropped to a low of 0.7021, with shorts accounting for over 58% of positions, showing a majority preference for betting against the coin. Nevertheless, the bulls haven’t given up the fight entirely, upholding the resistance with 42% of positions being long.
Amid these conditions, the volatility of Pepe coin has jumped to a four-month peak at 172%, introducing the chances of substantial moves. Should buyers step in with considerable purchases at a low point, there’s potential for the price of Pepe to surge past the resistance levels by month’s end.
What’s Next For PEPE Price?
Pepe price recovered from a key support level at $0.00000102, but buyers are finding it difficult to maintain upward momentum. As a result, Pepe price continues to face rejection above $0.00000123. As of writing, PEPE price trades at $0.00000115, declining over 1% in the last 24 hours.
The sellers will attempt to capitalize on the recent rejection to push PEPE’s price beneath the EMA200 mark on the hourly price chart. Should they succeed, the memecoin might fall toward the breakout point, which stands at $0.00000088, where a robust battle is expected between the buying and selling sides.
Should Pepe’s price rebound pattern’s support line, buyers will likely make another push to break the $0.00000148 barrier and take on the significant resistance at $0.00000188. On the other hand, a breakdown below the $0.00000088 could see the memecoin declining toward $0.0000006 for an extended consolidation.
