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Popular meme coin Pepe (PEPE) recorded a 12% price increase on Tuesday following Elon Musk’s move on X. He changed his display name to “Kekius Maximus” and chose the Pepe the Frog avatar, link with the online game Path of Exile.
However, this initial excitement did not last. As the flow of information about Musk’s actions begins to cool, PEPE has begun to lose some of its recent gains.
PEPE’s Short-Term Recovery: No Thanks to Elon Musk
On Tuesday, tech billionaire Elon Musk change appearance his X-file, adopting the nickname “Kekius Maximus.” Musk replaced his profile picture with a new ‘Pepe the Frog’ meme of the same name, creating the character as an armored warrior holding a video game controller.
The move led to a wave of optimism around Meme Coin PEPE, pushing its value up 12% during the trading period. However, this joy does not seem to last, as Meme Coin has begun a downward trend. In the past 24 hours, its value has decreased by 4%.
During that time, PEPE’s trading volume skyrocketed 31%. When the price of an asset falls while trading volume increases, it can indicate increased selling pressure as more participants look to exit their positions. This suggests that price increases are driven by market speculation rather than real demand for the asset, and are therefore unsustainable.
Furthermore, the increase in PEPE capital flows further reinforces this negative perception. According to Coinglass, in the past 24 hours, 6.34 million USD was withdrawn from the spot market. This is in stark contrast to PEPE’s $45 million inflows recorded on Tuesday.
When an asset experiences capital outflows, it means that more assets are sold or withdrawn from the market rather than being purchased. This indicates a decrease in demand as investors or traders are moving their assets away from that asset.
PEPE Price Prediction: Meme Coin Could Fall to $0.0000017
On the daily chart, PEPE’s Super Trend indicator is above its price, confirming a decline in demand. This indicator tracks the direction and strength of asset price trends. It is displayed as a line on the price chart, changing color to indicate the trend: blue for an uptrend and red for a downtrend.
When the price of an asset falls below the Super Trend line, it indicates bearish momentum in the market. This line acts as a resistance level, making it difficult to overcome the price level.
For PEPE, this resistance is at 0.000024 USD. If the downtrend continues, Meme Coin PEPE price could fall to 0.0000017 USD.
Conversely, PEPE price might attempt to break above the resistance at $0.000024. If successful, it could restore the all-time high of $0.000028.
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