Key Takeaways
- PEPE price dropped 9% in 24 hours and is trading at nearly $0.00001126 with rising sell pressure.
- Whales are accumulating more PEPE as this happens, which means a bounce could be underway.
- Technical indicators are warning of weakness, but oversold signals may trigger short-term recovery.
PEPE price dropped nearly 9% in the last 24 hours. This came amid a general crash in the memecoin market as investors fear a deeper correction.
PEPE, once a high-flyer in the crypto space, is now trading near $0.00001126 and testing primary support levels. The question is whether this is a short-term dip or the start of a bitter downtrend.
PEPE Price Struggles to Hold Support
PEPE price has dropped below the $0.0000118 support level. Analysts warn that if the token cannot reclaim this zone, it could fall further and possibly test $0.0000097.
This level has served as a cushion in past dips. Breaking below it might push the market sentiment more into bearish territory.
Trading volume remains high regardless, with over $817 million exchanged in the past 24 hours. This shows vigorous activity, despite no indication of this being from healthy demand.
In addition to this recent break below support, technical indicators also show that the market may be nearing exhaustion. The Relative Strength Index (RSI) currently sits at 36/100, which indicates that PEPE is near oversold territory.
An RSI below 30/100 often shows that a bounce is incoming for an asset. This means the PEPE price might have more room to fall before a comeback.
In addition to this, the Bollinger Bands on the 4-hour chart are widening. The token is trading near the lower band. This shows that volatility is on the rise and selling pressure is strongest. The asset is also well below its Simple Moving Average (SMA), strengthening the short-term bearish outlook.
Lower Highs and Downward Trend For PEPE Price
PEPE has been forming a symmetrical triangle pattern on the daily chart, a classic setup often followed by a breakout. However, the current trend shows lower highs and consistent selling. This is doing much to weaken the bullish argument and could be bearish for the asset.
PEPE price may break above the triangle’s upper trendline. Targets between $0.0000130 and $0.0000145 may come into play. Until then, support levels at $0.0000108, $0.0000105, and $0.0000097 are the most watched by analysts.
In a recent post, renowned analyst Ali Martinez said, “$PEPE needs to reclaim $0.0000118 as support to avoid a drop to $0.0000097.” As of writing, the asset now trades at $0.00001049. This means that PEPE is dangerously close to this support zone.
Whale Moves Support a Long-Term View
Despite short-term weakness, whales appear to be quietly accumulating PEPE. Data from Nansen shows that whale wallets now hold 305.52 trillion PEPE, an increase of 3%.
At the same time, exchange reserves have dropped by 2% to 250.62 trillion. This has dramatically reduced immediate selling pressure and kept the price afloat.
This could indicate long-term bullish sentiment among large holders. As whales move assets off exchanges, they’re less likely to sell in the future. Despite this, the market is still fragile and should be cautiously approached.
However, not all whale activity has been strategic. Some have been forced to exit positions due to price drops across the crypto market.
One example is a well-known trader, James Wynn, who was liquidated from a PEPE long position after the price crashed. Wynn reportedly lost $180,000 on PEPE and has further cemented his reputation as a high-risk trader.
According to data from Coinglass, over $207,000 in PEPE long positions were wiped out during this latest dip. Open interest also dropped from its $1 billion peak on July 22, indicating that many traders have exited the market.
Many depend on whether the PEPE price can reclaim the $0.0000118 level and break out of its bearish setup. Failure to do so could open the door to a drop to $0.00000850, especially if support at $0.0000105 breaks.
Leave a comment