Pepe Coin (PEPE), the third most valuable memecoin in the crypto universe, which caused a sensation when it hit the market this year, came under strong selling pressure this Monday (24), according to analyst Joel Frank.
“PEPE was trading on Monday at its lowest level in a month, in the lows of $0.0000013s, after falling more than 12% in the last 24 hours,” revealed Frank.
The memecoin is coming under pressure amid a broader cryptocurrency market slump, which has seen Bitcoin (BTC) retreat to $29,000 and Ethereum (ETH) drop below $1,850.
Frank suggests that cryptocurrency investors and traders are likely taking profits across the market on Monday due to a lack of positive news to further boost this year’s gains.
“Recent negative news related to Binance, the world’s largest cryptocurrency exchange, has also likely soured the tone,” he added.
Pepe’s latest dip means the token has retreated around 30% from its previous monthly peaks and is now trading south of both its 21-day and 50-day moving averages.
Frank warns that “recent price developments suggest that PEPE’s near-term technical outlook has deteriorated substantially”.
“With the Pepe Coin 14-day Relative Strength Index (RSI) suggesting that the cryptocurrency is still far from having entered oversold conditions, there is plenty of room for further downside in the near term,” the analyst noted.
A drop to the June lows would mark a further 37% decline from current levels. However, Frank points out that the June lows could be a good area for long-term buyers to take advantage of the low.
“As per DEXTools, there are currently over 134,000 individual wallets holding PEPE, up from around 20,000 over the last two months, which suggests that while the rate of accumulation by new buyers is slower, broader interest in the token remains.”
Despite still subdued market conditions for most cryptocurrencies in 2023, Frank believes that Pepe continues to demonstrate its resilience.
“With the crypto market transitioning from the brutal bear market rebound of 2022 to a new bull market in full effect, Pepe is a great candidate for appreciation given that it is at the forefront of a new wave of memecoins,” he said.