- Pepe (PEPE) faces a potential sharp correction as it nears a critical support at $0.0000103, with on-chain data showing holders realizing losses and increasing selling pressure.
- Weakening momentum indicators like the RSI and MACD suggest a possible double-digit decline if the price breaks below this key level.
Pepe (PEPE), the popular frog-themed memecoin, is facing increasing downside risks as it approaches a critical ascending trendline near $0.0000103. At the time of writing on Tuesday, the token’s price action suggests that a daily close below this support could trigger a sharp correction, potentially leading to a double-digit percentage decline in the near term.
On-chain data and technical indicators reinforce the bearish outlook. According to Santiment’s Network Realized Profit/Loss (NPL) metric, PEPE holders are currently realizing losses, a sign that investor confidence is waning. The NPL dropped sharply from a positive 189,150 on Sunday to a negative 50.21 million by Monday, signaling that a growing number of holders are selling below their purchase price.
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This loss realization is compounded by an uptick in PEPE’s supply on exchanges, which rose from 103.55 trillion tokens to 104.12 trillion within the same period. Increased token inflow to exchanges typically precedes heightened selling pressure, adding further fuel to the bearish narrative.
Supporting these observations, IntoTheBlock’s on-chain signals also paint a cautious picture, highlighting elevated risks for the meme coin. The charts from both Santiment and IntoTheBlock underline the fragility of PEPE’s current price structure.
From a technical perspective, PEPE’s momentum indicators are turning negative. The token recently slipped below its 50-day Exponential Moving Average (EMA) at $0.0000114, falling nearly 9% through Monday. Now, it is testing an ascending trendline created by connecting multiple lows since early April. This trendline and the daily support level at $0.0000103 are pivotal for determining the coin’s next move.
A decisive breakdown below this level could push PEPE down by approximately 15% toward the next support at $0.0000088. Should selling momentum persist, the decline might extend further to the $0.0000079 mark. The Relative Strength Index (RSI) reading at 40 and trending downward, alongside a bearish Moving Average Convergence Divergence (MACD) crossover and red histogram bars, all confirm a strengthening downtrend.
However, there remains a glimmer of hope for bulls if PEPE manages to hold the ascending trendline and rebounds. In that scenario, the token could retest the 50-day EMA resistance at $0.0000114, offering a potential recovery pathway.
In summary, while PEPE continues to enjoy its meme coin popularity, current on-chain data and technical signals suggest that investors should brace for a possible correction. A break below the key $0.0000103 support level could trigger a notable selloff, highlighting the risks of holding amid fading momentum and growing loss realization.