Why Pepe Coin’s Trading Volume and Social Dominance Are Declining and What It Means for Its Price
Highlights
- Pepe coin’s price has declined as its trading volume and social sentiment have weakened.
- The daily chart shows a risky rising wedge pattern forming.
- Signs of a head-and-shoulders pattern suggest potential bearish momentum.
Pepe Coin remains under pressure despite improved sentiment in the broader crypto market, with Bitcoin holding above $100,000. Pepe’s momentum has slowed, and both its trading volume and social dominance have declined. How might these trends impact its future price?
Is Pepe Coin’s Price at Risk Due to Declining Volume and Social Sentiment?
Data from CoinGecko reveals that Pepe’s daily trading volume has fallen sharply, dropping to $1.4 billion on Tuesday from over $18 billion in November. This marks the lowest level in more than two months. 
LunarCrash data also indicates that while social mentions of Pepe Coin have seen a slight uptick, they remain well below last year’s peak levels, signaling reduced community engagement.
Interpreting the Decline in Volume
In theory, a significant drop in a cryptocurrency’s trading volume and social dominance is typically viewed as bearish, as it suggests waning interest. However, this decrease could also indicate that “smart money” investors are accumulating the token in anticipation of future gains.
Technical Analysis: Mixed Signals for Pepe Coin
Pepe Coin’s daily chart presents conflicting signals:
- Bullish indicators: The token has remained above its 50-day and 100-day moving averages. Additionally, it recently completed a “break and retest” by returning to key support at $0.00001751—the highest point reached in May 2024 and the upper boundary of a previous cup-and-handle pattern. This retest often signals continuation of an upward trend.
- Bearish indicators: Since December 20, Pepe Coin has formed a rising wedge—a pattern with converging upward trendlines that often precedes a bearish breakdown. There are also signs of a head-and-shoulders (H&S) pattern, with a head at $0.0000283, a right shoulder at $0.000025, and a neckline at $0.000017. Both the rising wedge and H&S patterns are considered bearish.
Potential Price Scenarios
- Bearish Scenario: If the rising wedge plays out, Pepe Coin could drop to the support level at $0.00001715.
- Bullish Scenario: A breakout above $0.000026 (the right shoulder of the H&S pattern) would invalidate the bearish setup and signal a potential rally toward higher levels.
Pepe Coin’s price trajectory remains uncertain, with technical patterns suggesting a potential pullback while key support levels hint at possible resilience. The market will be closely watching for a breakout or breakdown in the coming weeks.
