PEPE price rose 70% within a frenetic 12-day period, before retracing 10% towards $0.000012 on July 19, on-chain analysis explores the main catalysts behind Ethereum’s second-largest meme coin’s ongoing pullback.
PEPE Price Hits Brick-wall after 70% Gains
After multiple all-time highs in the last 60-days, PEPE price continued on its remarkable upward trajectory at the start of this week. However, after delivering gains in excess of 70% within a frenetic 12-day period, profit-taking and events surrounding the Ethereum ETFs launch have pulled the hand brakes on the PEPE price rally.
Between July 5 and July 17, the PEPE price had increased by a whopping 71.14%, from a 100-day bottom of $0.000007 to reach the $0.000013 level on Wednesday. This sparked hopes that the PEPE price could reclaim the all-time highs of $0.000017 recorded back in May. However, over the last 48 hours, those bullish speculations have gone cold.
PEPE Traders Take “Sit-and-Watch” Stance Ahead of Ethereum ETFs Launch
Rather than advance further, the PEPE price has now retraced 10% towards the $0.00011 area at the time of writing on July 19. When assets begin to retract during a period of market-wide bullish sentiment, it suggests active profit-taking and less aggressive bullish trading among existing investors.
The IntoTheBlock chart below monitors the daily count of all transactions executed within the PEPE cryptocurrency ecosystem. This shows the level of trading activity that investors are currently engaging in and how that could impact short-term term price trends.
Daily Transactions count is a proxy for measuring, investors’ enthusiasm, and short-term network demand. PEPE Investors conducted 8,800 transactions when the markets peaked for the month on July 16. Unsurprisingly, within 24-hours PEPE price hit a 25-day peak of $0.000013 on Wednesday July 17.
But since then, the network transactions have cooled significantly, signaling that PEPE bulls could be taking their foot off the gas as the week draws to a close. At the time of writing, the latest data shows that PEPE attracted only 4,250 transactions at the close of July 18.
This reflects that investors have cut back on their network activity by over 50% within the last 48 hours.
The upcoming Ethereum ETFs’ launch, slated for July 23, is one key event that could drive this bearish shift in PEPE network activity. As the second-largest memecoin hosted on the Ethereum network, investors anticipated that the inflows by the ETH ETFs could spill over towards strategic native tokens.
The US SEC approved Ethereum ETF applications nearly two months ago on May 24, since then, multiple proposed launch dates have been delayed. As the newly-designated July 23 launch date approaches, investors are aware that another last-minute delay could spark widespread bearish price action.
With the launch date now barely 3-days away, the growing uncertainty could partly explain why PEPE investors have taken a less aggressive stance by cutting network transactions by 50% over the last two days.
In PEPE bulls remain in sit-and-watch mode, as observed since July 17, bears could set-sights on a rapid breakdown below $0.000010.
PEPE Price Forecast: Possible Detour Below $0.000010
PEPE price has recently experienced a notable increase of 71.14% over a 12-day period, reaching a high of approximately $0.000011796. This upward movement is characterized by a breakout above the 20-day Simple Moving Average (SMA) and the middle Bollinger Band, indicating a strong bullish momentum. However, the price encountered resistance at the upper Bollinger Band around $0.000012796, where it appears to have consolidated.
Currently, PEPE is trading near $0.00001176, with the Bollinger Bands starting to widen, suggesting increased volatility. The key resistance level to watch is at $0.000012796, where the price has struggled to break through. If PEPE manages to close above this resistance, it could pave the way for further gains toward the next psychological resistance level at $0.000014000.
On the downside, immediate support is found at the 20-day SMA around $0.00001012, followed by stronger support at the lower Bollinger Band near $0.00000745.
The Detrended Price Oscillator (DPO) below the price chart has started to tick upwards, indicating that the bullish trend might continue in the short term.
However, traders should be cautious as a potential correction could occur, bringing the price below $0.000010 if the support levels fail to hold. In such a scenario, the price could retest the recent low around $0.00000745, presenting a buying opportunity for those looking to enter at lower levels.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
