Pepe Coin (PEPE) is currently facing a bearish outlook, hovering near a critical support level that it must hold to avoid a potential 22% decline. The recent price action and market sentiment suggest that PEPE is at a pivotal point, with its future trajectory uncertain as it battles bearish forces.
Whales Offloading: A Cause for Concern
Recent data from IntoTheBlock indicates that large holders of Pepe Coin have been steadily offloading their assets in the past few days. On August 28, there was a net outflow of 1.16 trillion PEPE, worth approximately $8.96 million, from whale wallets. This coincided with a daily candle pattern on the same day, showing significant selling pressure, as evidenced by a larger upper wick, suggesting aggressive selling activity.
Further analysis of exchange flows from Coinglass reveals a net positive inflow of $4.19 million in PEPE to exchanges yesterday. This movement suggests that whales might be preparing to sell their assets, as exchanges are typically used for trading and liquidating holdings.
Additionally, the Coinglass Crypto Derivatives Visual Screener (CDVS) shows a 4.3% drop in open interest (OI) despite a slight 0.14% increase in PEPEâs price over the last 24 hours. This indicates trader indecision, with many uncertain about whether to close their short and long positions or remain in the market.
The Coinglass Liquidation Map also shows a slight imbalance, with more short positions than long ones. This dominance of bearish sentiment suggests that a significant portion of traders, including whales, expect PEPEâs price to decline further.
Potential for a 22% Drop If Support Fails
Pepe Coin's price has been trending downward following a recent pump that turned out to be a fake-out, leading to an aggressive correction and a 20% drop in value. The current price action indicates that PEPE may find support around $0.00000700, which would represent a 10% decline from its current level. However, if this support fails to hold, the price could plummet by another 22%, potentially revisiting the August 5 lows around $0.00000585.
The ongoing sell-off by whales and the increase in short positions are exacerbating the downward pressure, making it increasingly likely that the $0.00000700 support level could be breached.
However, if PEPE can bounce off this support and maintain its position around $0.00000700, it could signal a reversal of the current bearish trend. In such a scenario, PEPEâs price might surge above $0.00000900, potentially establishing new monthly highs and invalidating the bearish outlook.
As the market watches closely, the next few days will be critical for Pepe Coin as it navigates these challenging conditions.
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