Pepe is down 8% in a single day, but a trader calls him “healthy” – what's going on?

Pepe PEPE/USD is down 8% on the day, but traders remain convinced that the meme coin appears fundamentally sound and poised for further upside.

What happened: Cryptocurrency trader Davie Satoshi shared his analysis of the PEPE market performance and said that a technical indicator shows bearish momentum. According to the trader, this explains the recent drop.

It sees two strong support lines that it expects to hold, which is a healthy consolidation phase before further rises. The trader marked three key resistances on the chart:

Another cryptocurrency trader believe The meme coin is undergoing a new bullish test and sees this as a decline before a further rise.

Also Read: Binance Trader Says 'Stars Aligned for Bullish Q4' – Your Shopping List Includes Dogwifhat, Pepe But Not Dogecoin, Shiba Inu

Data from IntoTheBlock shows that a large transaction volume decreased by 14% and daily active addresses increased by 9%. Despite a significant price drop, Pepe's trading volume in the last 24 hours exceeded the combined volume of Dogecoin and Shiba Inu, but it has underperformed its rivals, which are only down 3% and 0.1%, respectively.

What's next?: The influence of meme coins is expected to be further explored at Benzinga's upcoming Future of Digital Assets event on November 19.

Read next:

Image: Shutterstock