Analysis: PEPE falls amid questions dating back to its launch

Source: CritpoTendencia Original Title: Analysis: PEPE Falls Amid Questions Dating Back to Its Launch Original Link: The price of PEPE continues its downward trend and has not yet regained its position within the top 3 meme coins by market capitalization, where it used to stabilize.

At the time of writing, PEPE trades at $0.0000043, with daily losses of 6.8%, weekly losses of 10%, and monthly losses of 26.5%. As a result of this correction, it now ranks 4th among the highest market cap meme coins, below MemeCore (M).

What Drives PEPE to Its Current Levels?

PEPE’s retreat occurs in a generalized context of declines within the meme coin market, where assets like DOGE show significant drops of 5.6% daily and 7.8% weekly.

Adding to this scenario are renewed questions about the initial token distribution. On Wednesday, Bubblemaps stated that around 30% of PEPE’s supply was concentrated in a single entity during its launch in April 2023. According to their analysis, this concentration would have caused strong early selling pressure, contradicting the narrative of a fair launch.

According to Bubblemaps, the day after the launch, there was a liquidation close to $2 million in PEPE, preventing the project from reaching $12 billion in market capitalization. These revelations sparked criticism within the community, especially because the project team had assured from the start that there would be no pre-sale or advantages for insiders.

This environment is compounded by the overall weakness of the crypto market. At the time of writing, BTC is down 1.8% and ETH by 4%.

PEPE Chart Analysis: Key Levels to Watch

Despite the decline, PEPE maintains a medium-term sideways trend characterized by wide movements, reflecting its high volatility. However, it has lost a significant support at $0.0000045.

Key Resistances:

• $0.0000050: area where the price faces a double top.
• $0.0000052: intermediate resistance that previously acted as support.
• $0.0000060: level where a more consistent recovery could begin.

Important Supports:

• $0.0000044: immediate support aligned with the daily low.
• $0.0000040: important point, coinciding with the annual lows.
• $0.0000036: level it could head toward if the previous support is lost.

The RSI stands at 32 points, close to the oversold zone but not yet entering it, suggesting there might be room for further decline before a significant rebound.

Important Data to Keep in Mind About PEPE

The top 100 PEPE wallets control approximately 70% of the supply (about 300T PEPE).

PEPE’s open interest is at $33.6 million, with a decrease of 9.74% in the last 24 hours.

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

Year-to-date, the token has accumulated a decline of 82.21%.

The crypto market is down today by 2.47% and approaching the $3 trillion market cap threshold.

The Fear and Greed Index stands at 29 points, reflecting a cautious environment.