PEPE Price Struggles Persist: Is More Pain on the Horizon?

After a 46% slump in August, the PEPE price has found a steady support buy-wall around the $0.0000008 territory. With the recent panic sell-off now cooling off, PEPE shows signs of a potential rebound. 

PEPE experienced a 46% price slump in the second half of August after the development team confirmed that malicious actors made away with assets worth $15 million. However, a steady start to September suggests that PEPE has found support around the $0.0000008 range. 

PEPE Long-Term Investors Are Regaining Confidence

According to recent on-chain data trends, long-term holders of the PEPE memecoin appear to be regaining confidence after last month’s sell-off frenzy. After stratospheric spikes that began around August 24, PEPE Age Consumed has now dropped to a two-month low.

As depicted in the chart below, 39.29 trillion recorded on September 4 was the first time PEPE Age Consumed had dropped below 40 trillion since June 19. Notably, it has not crossed 45 trillion since then. 

PEPE on the Verge of a Price Rebound | Age Consumed. Sept 2023. | Source: Santiment

Age Consumed is derived by multiplying recently traded coins by the number of days since they were last moved. This critical on-chain metric tracks changes in the trading activity of long-term holders within a blockchain community. 

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Typically, a significant decline in Age Consumed, as observed above, means that sell-pressure has subsided, and fewer long-held tokens are currently on the move. This has helped the PEPE price hold steady above the $0.00000075 support territory over the past week. 

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Whale Investors Could Trigger a Rebound, Or Not?

Whale investors on the PEPE network appear to be taking a hawkish position as the PEPE community comes to terms with the recent funds theft. However, historical data trends suggest that a positive change in the whale’s disposition could trigger a PEPE price rebound. 

The chart below shows how the PEPE price began to drop around August 24, as the whales began selling. Notably, the decline in whales’ trading activity from 208 transactions on August 25 to 10 transactions on September 5 reflects the price trend.

Since then, price movements have been closely correlated to the whales’ trading activity.

PEPE on the Verge of a Price Rebound | Whales Transaction Count, Sept 2023.
PEPE on the Verge of a Price Rebound | Whales Transaction Count, Sept 2023. | Source: Santiment

The number of confirmed transactions exceeding $100,000 provides insights into the real-time changes in whale investors’ trading sentiment. The timing of this downtrend suggests the PEPE institutional investors are firmly in the driving seat.

Hence, given the decline in Age Consumed is a key indicator, the sell-off could be over. If the whales’ react positively to buy the dip, the PEPE price could enter a rebound in the coming days.

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PEPE Price Prediction: Possible Rebound Toward $0.0000020

Considering the on-chain data trends analyzed above, the PEPE price will likely rebound toward $0.0000010 if the whales start buying again. The Global In/Out of Money Around Price data depicts the current PEPE holders’ entry price distribution and validates this prediction.  

But, as shown above, 28,120 addresses had bought 202 trillion PEPE at the maximum price of $0.0000010. Those holders could inadvertently cause a bearish reversal if they look to book profits. 

However, PEPE could reclaim the $0.000002 territory if that resistance level folds.

PEPE Price Prediction | GIOM data, Sept, 2023
PEPE Price Prediction | GIOM data, Sept, 2023 | Source: IntoTheBlock

But if the bearish momentum grows, the PEPE price could decline toward $0.0000006. However, as shown above, 12,170 addresses had bought 38.06 trillion PEPE for the average price of $0.0000001. They could force a PEPE price rebound if they HODL.  

But, if that support level gives way, PEPE could drop further towards $0.0000005.

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The post PEPE Price Struggles Persist: Is More Pain on the Horizon? appeared first on BeInCrypto.

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