Key Insights
- PEPE coin price has dropped 32% from its July highs and is now testing major support zones.
- Whale dominance is at its lowest in two years, amid worries over long-term support.
- Analysts warn that PEPE could crash to $0.000007 if the current downtrend speeds up.
PEPE coin price is under severe pressure after crashing 32% from its July highs. After rallying briefly to $0.00001083, the popular memecoin has fallen sharply again to around $0.00001002.
The dip is part of a more general market trend. Fears of new U.S. tariffs and macroeconomic instability mark it.
PEPE Coin Price Stalls as Arthur Hayes Dumps Holdings
PEPE, which is known for being as volatile as any other memecoin, is now at a critical threshold. Analysts are monitoring if the PEPE coin price can stay above $0.0000095. A drop below that could push the price down to $0.000007.
One of the triggers behind PEPE’s recent selloff was Arthur Hayes, former CEO of BitMEX. He decided to exit his $414,000 PEPE position. Hayes mentioned the rise in macroeconomic risks and the possible market reaction to the US’s new import tariffs on over 90 countries.
This policy, which is set to take effect on August 7, has shaken confidence across the crypto space. As expected, these jitters are stronger in the memecoin market, of which PEPE is a part.
According to data from CoinMarketCap, the sell-off saw a massive 3.26 trillion PEPE tokens change hands. This indicates that a trader’s capitulation is at play.
Whale dominance falls below 44%
Another more troubling trend is showing up beneath the surface. PEPE whale dominance has fallen to 43%. This is its lowest level in two years, according to IntoTheBlock (now Sentora).
This means that large investors are reducing their exposure to PEPE. It is often a warning sign for investors betting on the PEPE coin price in the long term.
Without whales to stabilise the market, volatility is prone to rising. This means that retail traders are more likely to react emotionally.
When this happens, short-term swings will increase. That change in market composition is a major reason analysts are predicting deeper price corrections.
Can PEPE Coin Price Hold Support?
Veteran trader Matthew Dixon believes PEPE is currently at a make-or-break level. A recent bearish divergence in the RSI was one of the first warning signs of the current correction.
The price made a higher high there, but RSI formed a lower high. According to Dixon, there is a support zone between $0.00001 and $0.0000095.
If PEPE falls below this range, Dixon warns that the drop could quicken toward $0.000007 as panic selling kicks in. Ali Martinez believes that the PEPE coin price could be ready for a rebound in the short term.
So what do the charts say? Is PEPE headed for a rebound, a correction, or a collapse altogether? PEPE’s RSI recently bounced from oversold levels around 30 and now sits near 42.
While that indicates that sellers might be tired, the RSI still shows bearish dominance and could slip further. More disturbingly, there is no confirmed bullish divergence yet on this indicator. In other words, the bulls need to have their fingers crossed.
For an actual reversal, traders must watch resistance zones between $0.0000115 and $0.0000125. A clean break above these levels could be a great sign of a rebound. However, if resistance holds and volume rises again on the downside, the next stop could be $0.00000820 or lower.
Ali’s outlook points towards a short-term bounce for the PEPE coin price. However, any rally could be short-lived unless bulls reclaim control above $0.000012.
Leave a comment