Pepe (PEPE) had a sluggish start this month but still managed to see a 25% price increase. However, recent developments have raised concerns about the sustainability of this rally, especially as the bullish momentum around the meme coin has waned over the last 24 hours.
Key on-chain metrics suggest that PEPE may struggle to maintain its current momentum. One important metric, the Mean Dollar Invested Age (MDIA), which tracks the average period a cryptocurrency has been in the same wallet, indicates increasing token circulation. This is typically a bearish sign for the price.
As of now, PEPE's 90-day MDIA, tracked by Santiment, has decreased from 42.30, signaling rising trading activity, which could portend a potential price drop. Additionally, PEPE's trading volume has declined to $613.26 million. Usually, volume needs to rise along with the price to sustain an uptrend.
On the technical side, PEPE's price is facing resistance around the 50-day Exponential Moving Average (EMA). Currently trading slightly below this level, the meme coin reflects a potential bearish trend. The price remains above the 20-day EMA, but with the recent red candlestick, there's a risk of falling below this shorter-period indicator.
Moreover, the token has yet to break above the descending triangle pattern. If this continues, PEPE could see its price drop further, targeting around $0.0000077. However, should crypto whales start accumulating the token in large volumes, there’s a chance PEPE might break above the descending triangle, potentially reaching $0.0000098.
