- PEPE was wrestling with a strong resistance that it hadn’t broken in nearly two months.
- Psychologically, the frogs might just be hopping sideways for a bit.
At press time, memecoins were doing what they do best – popping off, then cooling down just as fast.
Most high-cap memes are starting to fumble after a week of double-digit wins, and Pepe [PEPE] is no exception. After a fiery 24% rally that smashed through the $0.0000060 resistance, PEPE is now cooling off, down about 4% on the day, at press time.
No shocker there – the frogs are squaring off with a stubborn resistance zone they haven’t conquered since February.
Still, a few signs suggest PEPE might not be done just yet, with a shot at extending its dominance into the May rally.
A quick pit stop as investors shift gears
Normally, when a major resistance shows up, investors scramble to reshuffle their portfolios.
The fear of a pullback hangs heavy, pushing many to cash out before things get ugly. But PEPE’s Realized Profit metric is telling a different story.
Unlike past corrections – where realized profits spiked and prices quickly tanked – this time, even with elevated profit-taking, price action has stayed resilient.
Source: Glassnode
The big takeaway? FOMO on future gains is keeping investors glued to their positions, with fresh buyers soaking up the selling pressure.
The PEPE supply held by the top 1% addresses has soared to a yearly high of 85.162%, while the number of new addresses at $0.00000884 jumped to a monthly high of 1,387.
All these data points are stacking up, reinforcing AMBCrypto’s theory.
May could see PEPE break overhead supply zones
Adding to the list of positive catalysts, PEPE’s 24% weekly rally has outshone Dogecoin [DOGE] and Shiba Inu [SHIB]. Both have hit a wall at key resistance zones where supply is firmly in control.
Meanwhile, PEPE has smashed through the $0.0000090 mark in under two weeks – something it’s tried (and failed) to do four times since mid-February.
Looks like the frogs are finally leaping over that barrier.
Source: TradingView (PEPE/USDT)
Of course, the RSI is heating up, and some savvy investors might be looking to cash in on PEPE’s monster 60% rebound from the $0.0000060 dip just fourteen days ago.
But here’s the kicker: the recent dip looks like nothing more than a short-term shakeout, with weak hands getting flushed out.
This gives the bulls a golden opportunity to grab the supply, especially since PEPE’s showing some serious underlying resilience.
So, don’t be shocked if PEPE punches through the $0.000010 resistance soon. If this momentum keeps up, PEPE could be primed to reclaim key overhead supply zones this May.