As PEPE tests key support level, is a major rally on the way?

• PEPE tested key support levels, drawing parallels to its April price behavior for potential future gains.
• Despite recent declines, PEPE saw an active trading with a 24-hour volume of $1.29 Billion.

Pepe [PEPE] has emerged as one of the most robust tokens during the recent market downturn. Known for its organic growth, the memecoin has maintained a bullish trend, attracting the attention of market analysts. 

At press time, PEPE was testing a key support level, with analysts drawing parallels to its behavior in April.

Key support levels and price action

PEPE was attempting to reclaim a support level around $0.00000080 at press time, as highlighted by analyst Sjuul from AltCryptoGems.

In a recent post on X (formerly Twitter), Sjuul compared the current market situation to PEPE’s price movements in April, noting,

“Look at $PEPE back in April before the incredible run to an all-time high, and see it took several days to form a proper bottom before starting to rise.” 

Per AMBCrypto’s analysis of TradingView data, PEPE had previously tested a support level at approximately $0.0000060 multiple times between March and May.

After establishing this support in May, the memecoin saw a substantial uptrend, providing context for the current price movements and potential future behavior.

Source: X

Sjuul’s analysis emphasized the importance of patience in market bottoms.

“Bottoms take time to form,” the analyst noted, referencing historical price data that shows periods of consolidation before significant price movements. 

This insight suggested that PEPE may require time to establish a new support level before any potential upward trend.

As of press time, PEPE’s price was $0.057725, reflecting a 4.14% decline over the past 24 hours and a 26.84% decline over the past seven days. 

The 24-hour trading volume was $1,296,441,631, indicating active trading despite the recent price drop. With a circulating supply of 420 trillion PEPE, the token’s market cap was valued at $3,256,599,746.

PEPE recorded 775 active addresses and 3,165 transactions, showing fluctuating trends with notable spikes throughout the year.

These figures highlight dynamic participation in the PEPE network, despite the overall market downturn.

Source: Santiment

Market liquidity and open interest

In the past 24 hours, total liquidations in the PEPE market amounted to $2.4 million, with $1.4 million from long positions and $1 million from short positions. This indicated active trading and potential price volatility.

Source: Coinalyze

Realistic or not, here’s PEPE’s market cap in BTC’s terms

Additionally, AMBCrypto’s look at Coinalyze data showed a 7.34% decrease in open interest (OI) for PEPE in the last 24 hours.

The decline in OI, along with the consolidating price, suggested a potential downside risk for PEPE’s price in the near term.

Source: Coinalyze