PEPE’s price is above the crucial support level of $0.00001146. This level is under threat due to the consistent outflow of funds from the asset, indicating a declining conviction among investors.
Chaikin Money Flow (CMF) Indicator
The Chaikin Money Flow (CMF) is a valuable tool for understanding market trends by measuring the buying and selling pressure over time. The CMF for PEPE is at a two-month low, suggesting that the selling pressure is increasing. This decline in the CMF indicates that outflows are intensifying, which aligns with the observed behavior of investors, particularly those currently in profit.
Investor Activity and Profitability
Analyzing the activity of active addresses by profitability reveals a concerning trend. Investors who are realizing gains are actively selling their PEPE holdings. When the participation of such profitable investors exceeds 25%, it raises red flags about potential selling pressure. In PEPE’s case, this threshold has been surpassed, indicating heightened selling activity, likely to exert further downward pressure on the price.
PEPE Price Prediction: Potential Outcomes
– Current Trading Price: $0.00001195
– Support Level: $0.00001146
– Potential Downside: If PEPE fails to hold the support at $0.00001146 due to continued selling pressure, the price could drop to the next significant support level at $0.00001007.
– Potential Upside: On the positive side, if PEPE manages to bounce off the support level at $0.00001146 and investor sentiment improves, it could stabilize or even rise above its current trading price.
Conclusion
The key for PEPE’s price stability lies in maintaining the support level at $0.00001146. However, the declining CMF and the active selling by profitable investors indicate that this support is fragile. If the selling pressure continues and the support level is breached, PEPE could see a further decline to around $0.00001007. Conversely, if the price manages to bounce back and regain investor confidence, there is potential for stabilization and recovery. Investors should closely monitor the CMF and investor activity for signs of trend reversals or continued bearish momentum.
