The price of the Frog-themed Pepe coin (PEPE) has lost 6.50% in the last seven days. This decline could be linked to a major supply wall that has overpowered the underlying support.

Due to this rejection, PEPE’s price is currently trading at $0.0000098. In this on-chain analysis, BeInCrypto explains how this development could mean an extended downturn for the meme coin.

Pepe Faces Huge Supply Wall

According to the In/Out of Money Around Price (IOMAP) data, approximately 5,300 Pepe addresses hold 23.84 trillion tokens, which they accumulated at around $0.0000010. At the accumulation price, these tokens are worth nearly $240 million. It is also important to note that this group is currently holding the meme coin at a loss.

The IOMAP typically classifies addresses into those in profit, at breakeven, or out of the money. When a significant volume of addresses is out of the money at a specific price, it creates resistance at that level. 

Conversely, when there’s more volume in the money, it represents a support area. In Pepe’s case, the volume at $0.000010 far exceeds that at $0.0000090, suggesting the token might struggle to break above the $0.000010 resistance.

Read more: How to Buy Pepe (PEPE) With a Credit Card: A Step-by-Step Guide

Another factor suggests a price decrease in the Network Growth. This metric measures the number of new addresses interacting with a cryptocurrency.

When the reading increases, it means that the number of market participants making their first successful transaction has increased. A decrease, on the other hand, indicates that traction on the network has decreased.

If sustained, this decline could translate into less demand for PEPE. In turn, it could become difficult for the price to increase.

PEPE Price Analysis: 28% Decrease Likely

A look at the daily PEPE/USD chart shows that the Moving Average Convergence Divergence (MACD) has dropped to the negative region.

The MACD is a momentum indicator that calculates the difference between two exponential moving averages (EMAs) of an asset’s price, commonly the 12-period EMA and the 26-period EMA. 

Traders often use the crossover between the MACD and the signal line to identify potential bullish or bearish momentum. When it is positive, momentum is bullish. On the other hand, a negative reading indicates that the momentum is bearish.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

Since it is the latter, this position could further lower the Pepe coin price. Should that remain the case, PEPE’s price might drop by 28% to $0.0000070. However, if buying pressure increases with a volume larger than the one at the $240 million resistance, the price might bounce toward $0.000014.

ApeCoin is facing a tough setback as bearish momentum intensifies, with the price hitting a strong resistance at $1.755. After an attempt to push higher, the bulls have lost ground, allowing the bears to take control and halt the upward movement. 

Particularly, this key resistance level has emerged as a significant barrier, signaling a potential shift in market dynamics. With pessimistic pressure mounting, ApeCoin’s future direction hangs in the balance, as traders look for signs of whether the bulls can stage a recovery or if the bears will drive prices lower in the coming days.

This article analyzes ApeCoin’s struggle against strong resistance at the $1.755 level, focusing on how the bears have gained control of the market. It explores the factors driving the current bearish strength, examines key support and resistance levels, and assesses the likelihood of further downside pressure or a potential bullish recovery. 

Bearish Momentum Builds As ApeCoin Hits Key Resistance

Recently, APE’s price has turned bearish on the 4-hour chart, pulling back towards the $1 mark and the 100-day Simple Moving Average (SMA) after encountering strong resistance at $1.755. This retracement marks a notable shift in momentum, as the bulls failed to maintain their upward push, allowing bears to take control.

An analysis of the 4-hour Relative Strength Index (RSI) reveals a significant decline, with the signal line dropping to 49% from its previous peak of 92%. Typically, a fall below the critical 50% threshold suggests that bears are gaining control of the market, possibly leading to more downside if the RSI continues to trend lower.

Related Reading

Also, the daily chart for ApeCoin shows increasing negative sentiment, with negative candlesticks and a decline toward the 100-day SMA, reflecting rising selling pressure as ApeCoin struggles to hold higher levels. If bulls don’t defend the current support, additional declines are possible, making the 100-day SMA a critical level to watch for either a potential reversal or continued downward movement.

Finally, on the 1-day chart, the RSI has fallen to 65%, down from its previous position in the overbought zone suggesting that buying pressure has eased and that the market could be entering a period of consolidation or possible pullback.

Support Levels To Watch Amidst Bears’ Control

As bearish momentum strengthens, key support levels become crucial in determining ApeCoin’s next move. The first level to watch is the $1 mark, a psychological and technical support that could help prevent further declines for ApeCoin.

Related Reading

Meanwhile, if bears push the price below this, the next significant support lies around $0.66. A break below these levels could lay the groundwork for additional losses, as sellers would likely increase pressure.

However, if APE’s bulls manage to stage a recovery at the $1 support level, the price of ApeCoin could begin to rebound toward the $1.755 resistance. A successful breakout above this resistance could pave the way for more upward movement, potentially targeting the $2.1 level and beyond, signaling a stronger bullish resurgence.

Featured image from Adobe Stock, chart from Tradingview.com

On Tuesday, Bitcoin (BTC) exchange-traded funds (ETFs) experienced their first net negative flow in seven days. This comes amid the steady decline in market activity, which has caused the leading coin’s price to plummet to a weekly low.

As of this writing, Bitcoin trades at $66,776, noting a 2% price drop over the past week. With bearish sentiment steadily increasing around the coin, holders may need to prepare for potential further losses.

Bitcoin ETFs Record Outflows

Data from SosoValue shows that BTC spot ETFs experienced a net outflow of $79.09 million on Tuesday, breaking a streak of seven consecutive days of inflows that totaled over $2 billion.

Read more: Top 7 Platforms To Earn Bitcoin Sign-Up Bonuses in 2024

Tuesday’s negative flow was primarily due to a $134 million outflow from the ARK 21Shares Bitcoin ETF, as other ETF products saw either inflows or recorded no activity. Moreso, the largest ETF provider by assets under management, BlackRock’s iShares Bitcoin ETF (IBIT), recorded $43 million in inflows, significantly down from $329 million the previous day. 

This decline in institutional demand is largely attributed to the recent drop in Bitcoin’s value. Over the past week, the cryptocurrency has fallen by 2%, reaching its lowest price point in seven days as of press time.

BeInCrypto’s assessment of its momentum indicators has revealed the gradual growth in bearish sentiment toward the leading coin. For example, readings from its Moving average convergence/divergence (MACD) show its MACD line (blue) poised to cross below its trend line (orange). 

This indicator measures an asset’s price trends and momentum and identifies potential buy or sell signals. When set up this way, it confirms increased selling pressure in the market. The potential crossover suggests that the asset’s price momentum is weakening, and a downward trend or correction could follow.

BTC Price Prediction: Coin Has Only Two Options

Bitcoin’s price is falling toward its 20-day exponential moving average (EMA), which measures its average price over the past 20 trading days. 

When an asset’s price falls toward this level, it suggests the asset is pulling back but may find support around the 20-day EMA. If the price fails to hold above the 20-day EMA and breaks below it, this significantly increases the possibility of a trend reversal. It suggests that bearish sentiment is growing, and further downside might follow.

As of this writing, Bitcoin is trading at $66,776. This is just above the previous resistance level of $64,543, which it recently flipped into support.

If the growing bearish sentiment causes this support to fail upon retest, Bitcoin’s price could drop toward its next major support at $61,686. Should BTC bears break through this level, the price may plunge further to $58,828.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

However, if market sentiment improves and bullish momentum builds, Bitcoin could rally toward $68,612. Clearing this resistance would position BTC for a potential run to reclaim its all-time high of $73,794.