PEPE started the day trading at $0.000016 and had a small surge. However, it is down by over 8% in the last 24 hours following a dip to $0.000014.
Although it has a small wick sticking out of the candle, it is yet to recover from the downtrend. A close at the current valuation will result in a second consecutive red close.
The latest drop comes amidst several bullish events. One such event is the asset wallet addresses. According to sources, the number of PEPE users doubled in the last three months, indicating a massive hike in the token’s holders.
However, some large holders are selling off their bags in reaction to the most recent trend. One such withdrew $8 million worth of the asset within the last 24 hours.
Why PEPE Downtrend?
The token attained a new all-time high on May 27, surging to $0.000017. Reports of the asset reaching a new ATH have almost become the norm, as it has done this consistently for the past week.
The push to these milestones was undoubtedly bouyed by bullish actions; massive buying pressure. Several traders bought it following the announcement of the Ethereum ETF approval. Notably, traders were searching for alternatives to the second largest cryptocurrency but chose a memecoin in its ecosystem.
Due to the massive pressure, PEPE became overbought. This comes as the relative strength index surged above 70. The climb took place on May 20. An overbought asset is due for correction, and the most recent retracement is the phenomenon’s effect. The metric is at 64, which indicates room for more corrections.
Similarly, the moving average convergence divergence is printing sell signals. The 12-day exponential halted its uptrend. Currently declining, it is set to intercept the 26-day EMA. During the bearish convergence, the asset will experience more downtrends.
One critical level to watch is $0.000012. The mark held out against a retest some days back and may continue to do so. This is due to the small demand concentration around it. Nonetheless, with the crypto market’s bearish sentiment, the coin will decline more.
BONK Loses Over 10%
BONK is also struggling with intense bearish actions. The relative strength index shows a massive decline in buying pressure amidst the growing uncertainty in the crypto market. Nonetheless, asset trading slightly increased in the last 24 hours as more traders sold off.
Before now, it surged close to its all-time high but failed to attain it. Nonetheless, it peaked at $0.000044 as it fell short $0.000045. The latest decline is in reaction to rejections at the previous peak.
It is also worth noting that it enjoyed a significant boost from the news of its latest listing on Coinbase. The most recent listings opened it up to more traders in the US and other regions in which the exchange operates.
The candle representing the current intraday session shows that it lost $0.000040 and is at $0.00036 at the time of writing—an indication of an almost 12% decline in the last 24 hours.
RSI also pointed to the coin reaching peak buying volume as it climbed above 70. However, the stay at 72 was shortlived as the effect of an asset being overbought took cause.
MACD is printing sell signals in reaction to the most recent dip. It shows an ongoing bearish convergence as the 12-day EMA arched downwards and is heading to intercept the 26-day EMA in the coming days.
Since the rapid price rise, the asset failed to create any notable support. Nonetheless, the $0.000030 level was a resistance for over two months. It remains to be seen if it will serve as a strong mark in the coming days. The highlighted mark’s close proximity to the first pivot resistance adds to its strength.
