Meme coin PEPE is seemingly bouncing back after charting a series of red candlesticks over the past couple of days.
However, investors’ behavior and market conditions do not appear to support a positive outcome.
Meme Coin Investors Could Opt to Sell
PEPE’s price barely holds above the critical $0.00001146 support level, and it is facing the threat of further decline. This is due to the consistent outflow of money from the asset, which hints at a decline in conviction.
This can be noted in the Chaikin Money Flow (CMF). It is a technical analysis indicator that measures the buying and selling pressure over a specified period. It uses volume and price data to gauge the strength of a market trend, helping traders identify potential reversals and confirm trends.
The indicator is currently at a two-month low, which shows that the outflows are intensifying the selling pressure.
This is substantiated by the behavior of the investors, particularly those who are in profit. Upon observing the active addresses by profitability, it can be noted that PEPE holders noting gains are consistently active on the network.
This is of concern because such investors tend to sell their assets for profits. Generally, their participation under 25% is relatively less concerning, but more than the threshold is problematic, which is the case with PEPE.
Read More: Pepe: A Comprehensive Guide to What It Is and How It Works
PEPE Price Prediction: Bounce Back?
PEPE’s price, trading at $0.00001195, looks like it is bouncing off the support at $0.00001146. This is a positive development for the meme coin and its investors. However, the latter’s lack of conviction might cost its recovery.
Potential selling, as stated above, may lead to the PEPE price losing this crucial support and falling to $0.00001007.
Read More: Pepe (PEPE) Price Prediction 2024/2025/2030
On the other hand, a successful bounce-back will enable the PEPE price to rise to $0.00001369. Once this resistance level is broken, the meme coin could continue its rally toward $0.00001600.
The post Meme Coin PEPE Bounces Off Critical Support appeared first on BeInCrypto.
