Frog-themed meme coin Pepe (PEPE) encountered a significant obstacle, failing to break through the important resistance level at $0.000011. This analysis explores what PEPE holders should know as market activity slows down entering October.
Since June, the $0.000011 price level has been a crucial resistance point. Despite several attempts, PEPE has consistently failed to break through. Over the past week, the token’s price rose by 36%, bringing it closer to this resistance level, but increased selling pressure during the trading session on Sunday caused a decline. Currently, PEPE trades at $0.000010, marking a 2% drop over the past 24 hours.
Activity from PEPE’s large holders, who possess more than 0.1% of its circulating supply, is also of interest. Over the past week, these large holders have gradually sold their coins, evidenced by a 171% decline in the token’s large holders’ netflow. Reduced large holder netflow indicates bearish sentiment, with whale addresses selling their holdings, thereby increasing selling pressure and the risk of further price decline.
Further confirming the bearish sentiment, negative readings from PEPE’s Balance of Power (BoP) show that bears currently control the market. At -0.54, PEPE’s BoP, which measures the relationship between buying and selling pressure, reveals stronger selling pressure.
If selling momentum increases, PEPE’s price could drop by 22% to $0.000008. Failure by the bulls to defend this level could lead to an additional 32% decline. Conversely, a resurgence in buying activity might push PEPE toward the $0.000011 resistance, with the potential to climb to $0.000014 if it is successfully broken.
