PEPE has recently fallen to a level worth watching, which has previously been a significant demand area.
Popular memecoin PEPE has recently shown some bullish signs after falling for several days. However, its price action still indicates a lack of bullish momentum. Is there any reason why market bulls are currently still on the sidelines? PEPE's price action shows important bullish signs on the chart. Its price made lower lows between mid-August and the end of the first week of September. At the same time, the RSI made lower highs, resulting in a bullish divergence. This is usually a bullish sign for any asset.
Therefore, we can expect PEPE to see a swing low followed by a sharp rebound, especially considering the price recently fell to around 4-month lows - an area that had previously seen strong demand.
Is the demand for PEPE declining?
Some accumulation has led to some gains. This is confirmed by the Money Flow indicator, which rebounded from oversold territory at the beginning of the week.
Despite this accumulation, demand has been relatively weak. In fact, on-chain assessments show a lack of proper participation from whales. Data from IntoTheBlock also shows that whales have cut their PEPE holdings since the beginning of September. On September 1, whales held 203.27 trillion PEPE. Since then, their holdings have fallen to 200.24 trillion PEPE. This may explain why the memecoin has struggled to gain bullish momentum.
The historical concentration data also shows that retail holdings fell slightly from 112.52 trillion PEPE to 112.08 trillion PEPE. The only category to see positive growth over the same period was the investor category, whose holdings grew from 102.22 trillion PEPE to 105.75 trillion PEPE. In short, there may still be some interest in PEPE. Still, the PEPE memecoin is losing ground in the short term due to a lack of demand from whales and retail buyers. So what is its long-term position? Another metric - PEPE addresses by holding time - shows that holders are close to the historical peak of 83,710 addresses. The number of addresses of short-term swing traders (cruiser traders) also reached its highest level, at about 192,790.
Meanwhile, the number of traders has dropped significantly since June, falling to levels seen before PEPE’s February rally. This means that PEPE has come out of its weakness. Therefore, if PEPE volatility surges, we may see a surge in the number of traders. However, for now, memecoin will suffer from weak demand.
Can Pepe make a comeback?
After becoming one of the top 20 cryptocurrencies in 2024, Pepe has had a turbulent few months. In February, Pepe was worth just $0.000001; just three months later, at the end of May, it jumped to $0.00001718, a gain of 1,618%. At its peak, Pepe had a market cap of nearly $7 billion, ranking among the top 20 cryptocurrencies at the time.
Since then, PEPE has been in a strong downtrend, recently hitting a low of $0.00000603. Many have pointed to the launch of new meme coins including Raboo, Brett, and Sundog as the main reason why attention has turned elsewhere.
However, after creating a higher low of $0.00000644 on September 6, Pepe appears to have ended its recent downward momentum, rising to $0.000007822. Now, investors are waiting for further bullish signs amid a possible recovery in PEPE. Although the price divergence with the RSI shows bullish signs, PEPE has still pulled back due to weak demand, and a period of price consolidation is expected in the short term.
