The price of the Frog-themed Pepe coin (PEPE) has lost 6.50% in the last seven days. This decline could be linked to a major supply wall that has overpowered the underlying support.
Due to this rejection, PEPE’s price is currently trading at $0.0000098. In this on-chain analysis, BeInCrypto explains how this development could mean an extended downturn for the meme coin.
Pepe Faces Huge Supply Wall
According to the In/Out of Money Around Price (IOMAP) data, approximately 5,300 Pepe addresses hold 23.84 trillion tokens, which they accumulated at around $0.0000010. At the accumulation price, these tokens are worth nearly $240 million. It is also important to note that this group is currently holding the meme coin at a loss.
The IOMAP typically classifies addresses into those in profit, at breakeven, or out of the money. When a significant volume of addresses is out of the money at a specific price, it creates resistance at that level.
Conversely, when there’s more volume in the money, it represents a support area. In Pepe’s case, the volume at $0.000010 far exceeds that at $0.0000090, suggesting the token might struggle to break above the $0.000010 resistance.
Read more: How to Buy Pepe (PEPE) With a Credit Card: A Step-by-Step Guide
Another factor suggests a price decrease in the Network Growth. This metric measures the number of new addresses interacting with a cryptocurrency.
When the reading increases, it means that the number of market participants making their first successful transaction has increased. A decrease, on the other hand, indicates that traction on the network has decreased.
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Author: Victor Olanrewaju
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