Pepe Coin (PEPE) Price Could Tumble As Much As 20% Over the Next 7 Days As Rexas Finance (RXS) Pr...
In recent weeks, the crypto market has struggled to gather positive momentum; meme coins like Pepe (PEPE) have suffered greatly. PEPE stays in a bearish zone despite little fluctuations; it cannot break through critical resistance levels. As investors gravitate toward more exciting ventures like Rexas Finance (RXS), on-chain data point to a possible 20% drop in the price of PEPE over the next 7 days.
Pepe’s Volatility Faces Steady Decline
The frog-themed meme coin PEPE has seen a sharp decline in price over the past month. PEPE fell 33% within just 30 days after peaking at $0.000028. In response to this quick decline, many traders have left their positions, driving more selling pressure. Coinglass data shows Pepe underwent total liquidations of about $1.6 million, with long positions accounting for $1.1 million. Glassnode also notes a significant drop in PEPE’s Futures Open Interest, which points to a mass departure from leveraged meme coin positions.
Source: Coinglass
A typical pattern with meme coins is that they tend to lose Open Interest after periods of intense speculation. PEPE is no exception, whose open interest dropped 75% from $1.25 billion to just $249 million. Data from IntoTheBlock shows that PEPE’s price volatility reduced from 132.5% over the past week to 113.4%. Although reduced volatility is a good indication, in this case, it indicates a lack of upward impetus, which makes it challenging for PEPE to cross the critical $0.00001 resistance level.
What’s Next for PEPE?
Meme coin enthusiasts have battled to drive PEPE above its moving averages, underscoring a drop in demand at higher price levels. PEPE is trading at $0.000006867, a slight 2.58% decrease over the past 24 hours.
Source: CoinMarketCap
Should sellers continue to dominate, PEPE’s price can drop below the $0.000005 support level, providing further control to bears. Under such circumstances, buyers should defend vigorously, as the PEPE/USDT trading pair may drop to the crucial $0.0000049 support. However, falling below this level might set off strong long liquidations that quicken the negative trajectory.
