Pepe price is overall down for the week, but the bear pressure remains relentless. Technical indicators suggest the price of PEPE still has some more downside distance to cover. The entire crypto market cap is down 2.1%, and despite positive Bitcoin ETF netflows, the asset is down 0.9%. The high correlation between PEPE and Ethereum may be impacting its price now as the ETH ETF experienced negative netflows on August 15, reflecting a 2.9% drop in price. Can PEPE hold up against the overbearing sell pressure?
Good Exchange Netflows, Bad Pepe Price
PEPE displays mixed indicators between its price action and net exchange flows. On August 15, PEPE on exchange reserves reduced by 1.44 trillion ($10.89 million). However, the price of PEPE continued to drop, shedding 4% of its value over the past 24 hours to trade at $0.00000751.
Normally, when exchange reserves of a particular crypto asset are reduced, it is good news, as it shows investors are looking to hold the coin for the mid to long term.
A possible reason for the mixed observation may be that investors shifted their PEPE tokens to other exchanges or decentralized exchanges to take advantage of an arbitrage opportunity.
Coinglass data reveals that the PEPE open interest (OI) and Cumulative Volume Delta (CVD) are dropping. When this happens, it reveals that traders are closing the long positions, potentially resulting in a loss since the funding rate (FR) is currently negative.
A negative FR indicates that the PEPE Futures price is lower than the spot price, which means the number of Shorts is building up, suggesting the price may drop further.
Despite the bad price, PEPE still thrives in terms of adoption, as it has recorded an average of around 430 new holders per day over the last 30 days, according to CoinCarp.
There are few coins outside of Bitcoin, Ethereum, and Solana that have such rapid and consistent adoption. This constitutes a bullish signal for the PEPE price.
PEPE Wants to Revisit Yearly Lows
PEPE technical analysis reveals the asset still maintains a broader downward trend. The recent break down from the symmetrical triangle in a large red candle confirmed a strong bearish breakout and the continuation of this downtrend.
Pepe Coin price will likely find support around $0.00000680–$0.00000700, which marks the previous low. Although the downward pressure remains strong, a bounce from this level may result in a double-bottom bullish reversal pattern that may catapult PEPE over 105% to $0.00001280.
The Bollinger Bands and the Chaikin Money Flow (CMF) indicators suggest that the value of PEPE is currently in an oversold condition with money flowing out of the asset, which supports the bearish outlook.
Given the strength of the bearish breakout, the longer-term trend remains downward. However, increased adoption of the Pepe token may result in a trend reversal. A test and bounce from the $0.00000650 support zone may complete a potential bullish reversal pattern for the PEPE price. The next target would be $0.00001280.
The post Pepe Price Analysis: Will PEPE Survive Prevailing Bear Pressure? appeared first on CoinGape.
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