Pepe Coin price remains pressured even as the sentiment in the crypto market improves, with Bitcoin sitting above $100k. The token’s momentum has waned, and more data shows that its volume and social dominance have pulled back, So, how will all these fundamentals affect the Pepe price?
Is Pepe Coin Price At Risk As Volume And Social Dominance Falls?
Third-party data shows that the daily volume of Pepe coin has been in a downward trend as its price lost momentum. Data by CoinGecko shows that the daily volume dropped to $1.4 billion on Tuesday, down from over $18 billion in November. This volume has crashed to its lowest level in over two months.
More data by LunarCrash shows that, while the social dominance has risen recently, it remains significantly lower than its highest levels last year. That is a sign that fewer people are posting about Pepe coin.
Pepe Volume is Falling
In theory, a sharp decline in a cryptocurrency’s volume and social dominance should be a bearish thing since it is a sign that interest is falling. However, in reality, such a big drop could be a good thing as it is usually a sign of accumulation by smart money investors.
Pepe Social Dominance
Pepe Price Technical Analysis As Chart Sends Mixed Signals
The daily chart sends mixed signals about Pepe price. On the positive side, the token has held steady above the 50-day and 100-day moving averages. It has also formed a break and retest pattern by dropping to the key support at $0.00001751, which was the highest level in May 2024 and the upper side of the cup and handle pattern. Such a retest is often seen as a continuation sign in the market.
On the negative side, Pepe coin price has slowly formed a rising wedge chart pattern since December 20. This pattern is comprised of two ascending converging trendlines. It often leads to a bearish breakdown when they near their confluence levels.
From a distance, there is a possibility that the coin is forming a head and shoulders chart pattern. Its head is at $0.0000283, while the right shoulder is at $0.000025 and the neck is at $0.000017. Like the wedge, the H&S pattern is often seen as a bearish pattern. This bearish view is in line with this Pepe price outlook.
Pepe Coin Price
Pepe Token Price Targets
Therefore, Pepe may move at either direction at this point. The most likely scenario is where the rising wedge works and the token drops to the support at $0.00001715.
A complete bullish breakout will be confirmed if the token rises above the right shoulder at $0.000026. Such a move will invalidate the head and shoulders pattern and point to moe gains in the longer term.
The post Pepe Coin Volume & Social Dominance Drop: What This Means for PEPE Price appeared first on CoinGape.
