Pepe Price Forecast: PEPE Risks 100-Day EMA Fallout as Bullish Interest Fades

Pepe (PEPE) is experiencing significant selling pressure, posting its fifth consecutive day of declines with a 1% drop on Friday. The token's price has reversed from a 72% surge last week, signaling a possible profit-taking phase. On-chain data reveals declining network activity, with daily active addresses dropping to 3,737 from 6,476 just days earlier according to on-chain data.

Retail and social media interest in PEPE has also softened. Santiment data shows that the token's social dominance has fallen to 0.117% on Thursday, down from 0.282% on January 2. This decline highlights waning enthusiasm in online and retail circles for the frog-themed memecoin according to social media analysis.

The key technical level for PEPE is currently the 100-day Exponential Moving Average (EMA) at $0.00000598. If the price closes decisively below this level, it could trigger a further drop toward the 50-day EMA at $0.00000519. That level aligns with the November 4 low of $0.00000521, suggesting a potential target for bearish momentum according to technical analysis.

Why Did This Happen?

PEPE's recent price correction follows a sharp rally. Trading volume has fallen to 738.32 million PEPE on Thursday, a notable drop from the 1.66 billion peak in January. This suggests reduced liquidity and a loss of investor confidence in the token's short-term momentum according to trading volume data.

Network growth has also slowed significantly. The number of new participating addresses has dropped to 1,237 from a peak of 2,673 on Sunday. This indicates a broader cooling off in on-chain participation, which had surged during the token's recent rally according to on-chain metrics.

How Did Markets React?

Momentum indicators are flashing caution for PEPE. The Relative Strength Index (RSI) has moved from an overbought level to 60, and the Moving Average Convergence Divergence (MACD) is approaching the signal line with declining histogram bars. A crossover and a shift to red histogram bars below zero would confirm a bearish signal according to technical indicators.

On the other hand, a potential rebound for PEPE could aim for the 200-day EMA at $0.00000744. However, given the current technical landscape, this appears unlikely without a significant shift in market sentiment according to market analysis.

What Are Analysts Watching Next?

Analysts are closely monitoring the 100-day EMA as a critical support level. A break below this level could trigger further selling pressure and push the price lower. Additionally, the 50-day EMA is a key area of interest, as it aligns with a prior support level that may see renewed defensive trading according to technical analysis.

The broader market context is also important. PEPE is part of a larger meme coin rally that has seen tokens like BONK and FLOKI gain between 20% and 75% in the past week. However, the momentum in this sector appears to be slowing, which may impact PEPE's near-term prospects according to market trends.

Investors are also watching the overall volatility and trading volume in PEPE. While the token's 24-hour volume has exceeded $1.4 billion, this has not translated into sustained price action. High liquidity is evident, but it may not be enough to reverse the current bearish trend according to trading data.

The 100-day EMA remains a focal point for traders and analysts. If PEPE holds above this level, it could stabilize the price and potentially see a rebound. However, a decisive close below it would likely extend the downward movement and test key support levels according to technical indicators.