The popular memecoin Pepe (PEPE) has increased by 12% on Tuesday following Elon Musk's actions on X. He changed his display name to "Kekius Maximus" and used the Pepe the Frog profile picture, alluding to the online game Path of Exile.
However, this initial excitement did not last long. As the hype around Musk's actions began to subside, PEPE also lost some of its recent gains.
On Tuesday, tech billionaire Elon Musk changed his X account name to "Kekius Maximus" and changed his profile picture to the Pepe the Frog meme, recreating the image of a warrior in armor holding a video game controller.
This action quickly boosted the optimistic sentiment around the PEPE memecoin, pushing its value up by 12% for the day. However, the initial excitement seems to have not lasted long, as the price has started to decline. Over the past 24 hours, its value has decreased by 4%.
During this time, the PEPE trading volume surged by 31%. When the price of an asset declines and the trading volume increases, this can indicate higher selling pressure as many participants try to exit their positions. Thus, the price growth was driven by market speculation rather than real demand for the asset, making it unsustainable.
Furthermore, the increase in capital outflows from the PEPE market further reinforces this pessimistic outlook. According to Coinglass, $6.34 million has been withdrawn from the spot market in the past 24 hours. This is in stark contrast to the $45 million in capital inflows into the PEPE market recorded on Tuesday.
When an asset records capital outflows from the market, it means that more assets are being sold or withdrawn from the market than being bought, signaling a decrease in demand as investors or traders are transferring their holdings out of the asset.
On the daily chart, PEPE's Super Trend indicator is above the price, confirming the decrease in demand. This indicator tracks the direction and strength of the price trend. It is displayed as a line on the price chart, changing color to indicate the trend: green for an uptrend and red for a downtrend.
When the price of an asset falls below the Super Trend line, it signals a bearish momentum in the market. This line acts as a resistance level, making it difficult for the price to break through.
For PEPE, this resistance level is $0.000024. If the downtrend continues, the PEPE price could slide down to $0.0000017.
Conversely, the price may attempt to break above the $0.000024 resistance level. If successful, it will regain the All-Time-High of $0.000028.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Minh Anh
