Is PEPE Losing Steam? Trading Volume Drops 35% as It Struggles to Stay on Top

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Simon Chandler

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...

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October 28, 2024 09:16 EDT

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PEPE has risen by 0.5% in the past 24 hours, climbing to $0.000009001 on a day when the crypto market as a whole has gained by 1%.

Major tokens such as Bitcoin (BTC), Ethereal (ETH) and Solana (SOL) have risen by over 2% in the past day, while Dogecoin (DOGE) is up by 6% as it benefits from Elon Musk’s involvement with Donald Trump’s election campaign.

Yet PEPE has managed only a fraction of such an increase, with the 30th-biggest coin in the market remaining down by 14% in a week and by 17% in a month.

But while its volume has dropped substantially in the past week, PEPE does hold on to a 640% gain in a year, underlining its status as a vehicle of choice for whales and other large traders.

Is PEPE Losing Steam? Trading Volume Drops 35% as It Struggles to Stay on Top

PEPE is moving into a more bullish position today, suggesting that it could stage a breakout soon.

Since plunging to 20 over the weekend, its relative strength index (purple) has returned to 50, signalling an increase in buying pressure.

Its 30-period moving average (orange) has flattened out after a sustained drop below the 200-period average (blue), suggesting that the coin is close to entering a more bullish period.

On the other hand, the meme token’s trading volume tells a different story.

It has declined by 35% in a week, and is down by a hefty 60% in a month, indicating a substantial medium-term fall in demand.

This may be worrying for PEPE holders, yet it’s interesting to note that BTC’s 24-hour trading volume is down by 37% in a week.

In other words, we’re dealing with a market-wide fall in demand, and while this is usually a negative, low liquidity can permit big upswings.

On the other hand, they can also make a coin vulnerable to big downswings, with one whale sending 1.28 billion PEPE to Binance a few hours ago.

This could mean that the coin will suffer further losses in the coming hours, although a more positive spin is that the whale is simply readying themselves for a later upswing that they will then capitalize on.

Either way, the bigger picture continues to look good for PEPE and the wider market, which could receive a shot in the arm if Donald Trump wins the US election next week.

Trump is generally regarded as more crypto-friendly than his rival, Kamala Harris, so a victory for the former president could lift prices across the board.

In such a context, PEPE could reach $0.0000150 by the end of next month.

More Bullish Pepe Coin on the Horizon

PEPE is likely to continue performing well in the nearer future, but there may come a point where its maturity and size gets in the way of big rallies.

As such, traders may opt to diversify into newer meme coins, including some of the bigger presale tokens that can rally strongly when they list for the first time.

A prime candidate to do this is layer-two project Pepe Unchained (PEPU), which has raised a highly impressive $22.9 million in its ongoing token offering.

Pepe Unchained is building a layer-two network for Ethereum, with its L2 offering low fees and transactions that are 100x faster than what you’d find on its underlying layer-one.

It’s aiming to become an ecosystem for meme tokens, which have been one of the biggest stories in crypto in 2024.

Helping to attract users and investors will be the fact that, because of the platform’s scalability , it will provide double the staking rewards it would have as a normal Ethereal-based coin.

This will provide a greater incentive to hold PEPU for the long-term, and given that the coin is already has plenty of utility for transaction fees, it could witness massive demand.

It has a capped supply of 8 billion PEPU, with 30% of this going to staking and 20% to the ongoing presale.

Perhaps most bullishly of all, the coin’s X account now has over 13,000 followers, a sign of how big its community could become.

Read More: Pepe Unchained Price Prediction

New investors can still join PEPU’s sale at the coin’s official website, with the coin now selling at $0.01179.

This price will increase several more times before the sale ends, at which point it will list on exchanges, where it looks ready to surge.

Buy PEPU Now