On September 4, Pepe (PEPE) was valued at $0.0000070 and has since slightly increased to $0.0000072. However, hopes for a continued upswing are challenged by on-chain analysis indicating potential difficulties in maintaining the rally.
Firstly, Pepe’s active addresses, essential for measuring user interaction with the cryptocurrency, have dropped significantly since peaking in early August, reaching their lowest levels since February. This decrease in active addresses signals reduced market participation, often leading to stagnant or declining prices.
Additionally, Pepe appears to be losing liquidity to NEIRO, another meme coin on Ethereum, which has seen an 87% increase in the last 24 hours. This shift suggests that liquidity once enjoyed by PEPE is moving to NEIRO, adversely affecting Pepe’s recovery efforts.
Further highlighting this issue, data from IntoTheBlock shows a 20% decrease in the number of addresses holding PEPE for the last 30 days, indicating that short-term holders might be abandoning the token as its price underperforms.
Technical analysis of PEPE's daily chart reveals a head-and-shoulders pattern, a sign that the uptrend may be ending. Resistance is noted around $0.0000077, and failing to surpass this level could lead to a price pullback to $0.0000069. If PEPE can rise above $0.0000077, it might reach $0.0000079, with a potential target of $0.00000897.
