Pepe Coin Price Analysis: 20% Correction Looms Amid Declining Volume

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.