PEPE Price Prediction: Sluggish Start This Month, But 25% Increase Still Managed

Although PEPE had a sluggish start this month, its price still managed a 25% increase. However, the bullish momentum around the meme coin has waned

The price of PEPE has risen by 25% this month, but the bullish momentum around the meme coin has waned in the last 24 hours. Several key on-chain metrics suggest that PEPE may struggle to maintain this momentum.

For example, the Mean Dollar Invested Age (MDIA) tracks the average period a cryptocurrency has been in the same wallet. When the MDIA increases, holders keep the same tokens in the same wallet. Conversely, a decreasing MDIA indicates that previously dormant wallets are now moving back into circulation.

While the former is a bullish sign, the latter is a bearish one. According to Santiment, PEPE’s 90-day MDIA was 42.30. At press time, it had decreased, indicating rising trading activity and a potential price drop.

Another metric that could indicate a bearish trend is trading volume. As of now, the volume for PEPE stands at $613.26 million. Usually, when the price goes up and the volume also increases, it strengthens the uptrend.

However, when the volume decreases after a substantial price increase, it suggests that the upswing may not continue.

From a technical perspective, based on the daily chart, PEPE’s price faces resistance around the 50-day Exponential Moving Average (EMA), which is highlighted in yellow on the chart. The EMA is an indicator that shows the trend direction of a cryptocurrency.

Currently, the meme coin trades slightly below this level, suggesting a potential bearish trend. However, the price is still above the 20-day EMA, which is shown in blue. Given the recent red candlestick, there’s a risk of the price falling below this shorter-period indicator.

Moreover, the token is yet to break above the descending triangle pattern. If this continues, the frog-themed meme coin could see a price drop, with the next target being around $0.0000077.

This outlook could change if crypto whales begin accumulating the token in large volumes. In that scenario, PEPE might break above the descending triangle, potentially reaching $0.0000098.