- Summary:
- Pepe price has a weak correlation with Bitcoin's and has struggled for momentum in recent days. We tell you why that won't change soon.
PEPE price declined by 4.5% on Thursday, wiping out nearly half of the gains realised the day before. The meme coin followed the cue set by market leader Bitcoin’s fall from $100k to $97k, with investors adopting a cautious approach. PEPE has struggled in the last month, with its value down by 22% during that period.
Why Pepe downside isn’t over yet
Meme coins have failed to sparkle since the Trump-driven crypto market upturn kicked off in November 2024, and have trailed Bitcoin and most altcoins’ performances. PEPE price is limited by an affinity towards utility-based coins as investors increasingly focus on sustainability over short-term hype.
According to IntoTheBlock, PEPE has a weak correlation coefficient of 0.36 with Bitcoin, signaling that it could still struggle to gather momentum even if Bitcoin returns to the six-figure level.
The momentum on PEPE leans towards the downside, as it trades below its Volume Weighted Moving Average (VWMA) on the daily chart. In addition, the 20-period moving average has recently crossed below the 50-MA. Meanwhile, the coin’s traded volume was up by 24.9% in the 24 hours preceding this writing. That signaled the strengthening of the downward momentum, adding credence to a near-term decline of PEPE price.
PEPE is one of the cryptocurrencies with the largest percentage of whale holdings. According to analytics site, CoinMarketCap, 46.2% of PEPE tokens are held by whales. Therefore, this could potentially be a key disruptor to the price movement in the coming days, especially if whales decide to buy the dip.
PEPE Price Prediction
The momentum on PEPE price prediction pivots at $0.0000188 and the downside will prevail if resistance persists at that level. The first support is likely to be at $0.0000179. However, a stronger downward momentum will break below that level and potentially test $0.0000170.
Conversely, moving above $0.0000188 will signal control by the buyers. With that, PEPE coin price will likely move higher and meet the first resistance at $0.0000193. The downside narrative will be invalid if the token breaks above that level. That momentum could propel the coin higher to test $0.0000200.
