Pepe (PEPE), once riding high on the wave of meme coin hype, is now facing a downturn. After a surge in popularity, the frog-themed token has struggled to maintain its value. Analysts are now predicting that Pepe could experience a 50% drop in price over the coming months.
Pepe has seen a dramatic fall from its highs, with the token shedding about 45% of its value in the past month. Currently ranked #29, it stands at a price of $0.059900, with a market capitalization of $4.16 billion.
Despite a small increase of 1.80% in the past 24 hours, the overall sentiment surrounding the coin remains bearish. However, the trading volume has surged by 164.71%, reaching $979.72 million, but this rise may be more symbolic of short-term fluctuations rather than long-term stability.
One concerning trend is the decrease in large transactions, which suggests that major investors, often known as “whales,” are losing interest in Pepe. A notable move by Ceffu, Binance’s custody arm, also saw over 1 trillion PEPE tokens transferred back to the exchange, raising suspicions of potential sell-offs and further price pressure.
Shifting investor focus: The end of the meme coin frenzy?
Pepe’s price movements are largely driven by the fluctuating interest in meme coins, which tend to thrive during periods of market enthusiasm. However, the hype around these tokens is widely short-lived. New projects and tokens continue to emerge, drawing attention and capital away from older meme coins. While Pepe’s loyal community still hopes for a recovery, analysts warn that without a sustained surge in interest, the coin’s value could continue to slide.
With fewer whales actively participating and growing competition in the meme coin space, the token is becoming increasingly vulnerable. Many traders may opt for new opportunities that promise higher returns, leaving Pepe to face an extended period of stagnation or further losses.
Bearish technical indicators: MACD and RSI signals
Technical analysis of Pepe Coin price movement also tends to align with the bearish sentiment. The current MACD line is below the signal line, so the MACD indicator is currently in a negative divergence. But that means that the sellers are at the top, and it may go lower.
Moreover, the Relative Strength Index (RSI) is 38.27. This means that the RSI is already tipping over into oversold territory. A price reversal becomes unlikely until the RSI rises above 50. But despite that, for now, it still looks like the market sentiment is pushing the price further down.
