Meme coins are on a slippery slope and struggle to gain momentum despite the Bitcoin rally. Pepe, the frog-themed meme coin, is holding fort at key support. While bulls eye an extended rally, the massive supply zone warns of an intense pullback.
As Bitcoin stabilizes above the $106,000 level, the meme coins struggle to regain bullish momentum. The top names like Dogecoin DOGE $0.16 24h volatility: 0.9% Market cap: $23.09 B Vol. 24h: $688.20 M , Shiba Inu SHIB $0.000012 24h volatility: 0.7% Market cap: $6.98 B Vol. 24h: $109.50 M , and Pepe PEPE $0.000007 24h volatility: 0.7% Market cap: $3.00 B Vol. 24h: $521.86 M have witnessed a minor recovery of 1.0% to 2.2% over the past 24 hours.
Currently, the Pepe coin struggles to reclaim its $10 billion market cap as weekly returns are down to 4.97%. Will a broader market recovery push Pepe’s price to a new all-time high?
Consolidation at Key Support, PEPE Bulls at Risk
In the daily chart, the Pepe price action reveals a sideways trend. The bullish fort at $0.00002311 supports the consolidation phase.
With multiple lower price rejection candles within this range, the Pepe coin sustains dominance above the $0.000023 level while witnessing a surge in supply pressure. Based on the prevailing price trend, the Pepe rally is making a higher low formation and retesting the previous swing high.
Currently, the meme coin trades at $0.00002345, with a negligible intraday move after yesterday’s 2.92% drop. Using the trend-based Fibonacci levels, the Pepe price action reveals the consolidation range, taking support from the 23.60% level as well.
Despite the lower price action in the consolidation range, the daily RSI line maintains a declining trend. Furthermore, the lack of bullish divergence warns of a bearish continuation as it nears the halfway line.
Amid the consolidation range, the 20-day EMA line acts as a dynamic support, holding and absorbing the supply spikes. Meanwhile, the 50-day, 100-day, and 200-day EMA lines maintain a positive alignment and are ready to act as dynamic support levels. Further, the nearest dynamic support is firmly positioned at $0.00001929.
On-chain Reveals Massive Supply
As the consolidation range grows intense, the in-and-out-of-the-money around the price indicator from IntoTheBlock highlights massive supply overhead. Based on this indicator, the immediate out-of-the-money range between $0.000023 and $0.000024 accounts for a massive incoming supply of $21.36 trillion.
This massive supply is held by 12.61k addresses, potentially booking profits. Despite the massive overhead supply, the indicator reveals that 78.95% of the volume around the price remains “in the money.”
Further, the positive “in the money” zone holds 132.51 trillion Pepe worth $3.08 billion. Meanwhile, the “out of the money” zone holds 35.3 trillion Pepe tokens worth $821 million.
PEPE Price Targets
Using the trend-based Fibonacci levels, a bullish recovery will likely face opposition at the 38.20% Fibonacci level at $0.000027762. In the case of an extended rally, the 61.80% and 78.60% levels, at $0.00003583 and $0.00004297, are potential price targets.
Conversely, a bearish continuation resulting in a failed retest will test the bullish dominance at the $0.000020 psychological mark and the horizontal support level at $0.000018366.
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