Pepe Price Faces Persistent Bear Pressure: Will It Hold Up?

Overview of Pepe Price Action

Pepe price has experienced a challenging week, with persistent bear pressure pushing the asset further down. Despite some positive developments in the broader crypto market, such as favorable Bitcoin ETF netflows, Pepe Coin (PEPE) has not been able to escape the downward trend. The entire cryptocurrency market cap is down by 2.1%, and although Bitcoin’s price has only dipped by 0.9%, PEPE’s high correlation with Ethereum seems to be pulling it down as well. The Ethereum ETF saw negative netflows on August 15, leading to a 2.9% price drop, which has likely influenced PEPE price movement.

Pepe Coin’s Mixed Signals: Exchange Netflows and Price Dynamics

PEPE’s market behavior shows a discrepancy between its exchange netflows and its price action. On August 15, a significant amount of PEPE—approximately 1.44 trillion tokens, valued at $10.89 million—was withdrawn from exchanges. This typically signals that investors are planning to hold the asset for the long term, as they move their holdings off exchanges to potentially safer storage options. However, despite this decrease in exchange reserves, PEPE’s price continued its downward trajectory, dropping by 4% within 24 hours to trade at $0.00000751.

This unusual situation may be attributed to investors transferring their PEPE holdings to other exchanges or decentralized platforms to exploit arbitrage opportunities. Moreover, data from Coinglass highlights a decline in PEPE’s open interest (OI) and cumulative volume delta (CVD). Such decreases usually indicate that traders are closing their long positions, possibly at a loss, especially as the current funding rate (FR) is negative. A negative FR suggests that the PEPE futures price is lower than its spot price, pointing to an accumulation of short positions and potential further price declines.

Adoption and Technical Indicators: A Glimmer of Hope for PEPE?

Despite the current bearish market conditions, PEPE continues to see steady adoption. According to CoinCarp, the token has gained an average of 430 new holders per day over the last month, a strong indicator of its growing popularity. Outside of major coins like Bitcoin, Ethereum, and Solana, few assets have seen such consistent adoption, which could be a bullish sign for PEPE’s future price movement.

From a technical analysis perspective, PEPE is still entrenched in a broader downtrend. The recent breakdown from a symmetrical triangle pattern, marked by a large red candle, confirmed a strong bearish breakout. This indicates that the downward trend is likely to continue in the near term.

PEPE’s price is expected to find support around the $0.00000680–$0.00000700 range, which corresponds to its previous low. Although the bearish pressure remains strong, a rebound from this support level could form a double-bottom bullish reversal pattern. If this pattern plays out, it could propel PEPE’s price by over 105%, potentially reaching $0.00001280.

However, current indicators such as the Bollinger Bands and the Chaikin Money Flow (CMF) suggest that PEPE is oversold, with significant capital flowing out of the asset. This supports the bearish outlook, indicating that the longer-term trend may continue downward.

Looking Forward: Can PEPE Defy the Bears?

Despite the bleak outlook, the increased adoption of the Pepe token might provide the necessary momentum for a trend reversal. A successful test and bounce from the critical $0.00000650 support zone could complete a bullish reversal pattern, setting PEPE on a path toward its next target of $0.00001280. However, the strength of the bearish breakout and the ongoing sell pressure will likely pose significant challenges in the short term.

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