PEPE Price Consolidates Within a Horizontal Channel

PEPE Price Stabilizes Within Horizontal Channel

The price of the popular memecoin project, PEPE, has been confined within a narrow price range for an extended period. Analyzing the daily chart reveals a well-defined horizontal channel that has been guiding PEPE's trading since July 15.

Horizontal Channel Dynamics

A horizontal channel is formed when an asset's price oscillates within a fixed range for a sustained duration. This implies a balance between buyers and sellers, where neither side can exert a dominant influence. The upper boundary of the channel constitutes resistance, while the lower boundary provides support. Since July 15, PEPE has faced resistance at $0.000012 and support at $0.000011.

Market Sentiment and Whale Activity

On-chain data indicates a decline in PEPE's demand. IntoTheBlock notes a sharp 41% decrease in daily active addresses and a 43% drop in new address creations within the past week.

Additionally, PEPE whales have been reducing their risks by minimizing large transactions. Over the past seven days, transactions exceeding $100,000 have plummeted by 51%, suggesting a cautious approach by major holders.

Technical Outlook

The market's prevailing bullish momentum could potentially propel PEPE beyond its current resistance level of $0.000012. This optimism is supported by the Parabolic SAR indicator, which positions its points below PEPE's price, signaling a potential uptrend.

If PEPE breaches the resistance, the next target would be $0.000013. However, if the bulls fail to sustain support, PEPE may slide back to $0.0000098.