- Number of large PEPE transactions dropped from 1,520 to 155 over the last three months
- PEPE’s price dropped by more than 37%, while volume rose by 60%+ in a month
PEPE saw a significant fall in large transactions from a high of 1,520 to just 155 over the past three months. This decline closely mirrored PEPE’s price, which fell from $0.000026 to $0.000010 over the same period.
Historically, a reduction in large transactions is a sign of falling interest or liquidity, often leading to a price drop, as observed between early December and February.
Large transactions peaked in early December, climbing up to 1.52k transactions when the price spiked to $0.000026. Subsequently, as large transactions fell, the price also diminished, confirming a potential correlation between transaction volume and price stability.
Source: Ali/X
This trend culminated in late February with only 155 large transactions, indicating reduced trading activity and potentially lower market confidence. This exerted downward pressure on PEPE’s price.
This historical pattern is an example of how significant shifts in transaction volume can directly impact asset valuation in the crypto market.
What next for PEPE’s price action?
With the price dropping by more than 37% over the past month while volume climbed by 60%+, PEPE could be set for another drop as this signals sell-off in the Futures market.
Analysis of PEPE/USDT pair on Binance revealed that the price is currently recently dipping towards support zones between $0.0000620 and $0.0000420, with the press time price at $0.0000924. PEPE trading below the 200EMA further confirmed this downward momentum – A sign of bearish sentiment.
The OBV indicator, at 1.699T, has trended south alongside the price, indicating selling pressure. This negative divergence typically alludes to further declines on the charts.
Source: TradingView
However, the price is at a support level, which could provide a floor and possibly initiate a reversal if buying interest increases. If the support holds, PEPE could see a rebound towards the $0.0001 resistance level.
Conversely, a breakdown below $0.0000774 could signal further drops, potentially hitting new lows around $0.000062. The OBV’s low reading could either precede a recovery if reversed, or confirm a deeper descent if it continues to fall.
In/Out of the Money Around Price
Looking at the “In/Out of the Money Around Price” metric indicated that the 36.68% of holders in profit account for $259.54 million. This creates potential support at lower levels as this group may add stability if the price drops.
PEPE holders who bought above the current price, 57.47% accounting for $406.59 million, hinted at potential resistances at higher prices. They could either sell to cut losses or wait for price recovery.
Source: IntoTheBlock
Holders near the break-even point or 5.85% of these holders made up $41.37M. A larger proportion of holders were out of the money, suggesting potential selling pressure if the price attempts to rise.
This could cap upside unless strong buying momentum emerges to push the price above these levels.
