PEPE decline analysis: the token loses market ranking amid skepticism

Source: CritpoTendencia Original Title: Analysis: PEPE declines amid questions dating back to its launch Original Link: PEPE’s price continues its downward trajectory and has yet to regain its position among the top three memecoins, a position it previously held stably.

At the time of writing, PEPE is trading at $0.0000043, down 6.8% for the day, 10% for the week, and 26.5% for the month. Due to this correction, PEPE now ranks fourth among the largest memecoin by market cap, below MemeCore (M).

What are the factors driving PEPE to its current level?

PEPE’s pullback occurred amid a general decline in the memecoin market, with assets like DOGE dropping up to 5.6% daily and 7.8% weekly.

In this context, new questions about the token’s initial distribution have arisen. On Wednesday, Bubblemaps claimed on X that during the April 2023 launch, approximately 30% of PEPE’s supply was concentrated in a single entity. According to their analysis, this concentration led to early strong selling pressure, contradicting the narrative of a “fair launch.”

Bubblemaps stated that the day after launch, PEPE experienced about $2 million in liquidations, preventing the project from reaching a $12 billion market cap. These disclosures sparked criticism within the community, especially since the project team claimed from the outset that there would be no presale or insider advantages.

The overall weakness in the crypto market has also worsened this environment. At the time of writing, BTC is down 1.8%, and ETH has fallen 4%.

PEPE Chart Analysis: Key Levels to Watch

Despite the decline, PEPE has maintained a medium-term sideways trend characterized by high volatility. However, it has lost the key support at $0.0000045.

Major Resistance Levels:

• $0.0000050: Area where the price faces a double top.
• $0.0000052: Previous support now acting as an intermediate resistance.
• $0.0000060: Level where a more sustained rebound might begin.

Relevant Support Levels:

• $0.0000044: Direct support aligned with daily lows.
• $0.0000040: Important point, consistent with the yearly low.
• $0.0000036: Level where the price might head if the previous support is lost.

The RSI is at 32, approaching oversold territory but not yet entering it, indicating there could be further downside before a significant rebound occurs.

Key Data Points on PEPE

According to Coingape, the top 100 PEPE wallets control about 70% of the supply (approximately 300 trillion PEPE).

PEPE’s open interest is $33.6 million, down 9.74% in the past 24 hours, according to Coinanalize.

The PEPE ecosystem’s TVL stands at $37.29 million.

On an annual basis, the token has declined by 82.21%.

The crypto market today corrected by 2.47%, approaching the $3 trillion market cap threshold again.

CoinMarketCap’s fear and greed index is at 29, reflecting a cautious sentiment.