CoinStats - PEPE Price Analysis: Bears Prevail as Coin Dr...

PEPE Price Analysis: Bears Prevail as Coin Drops to Critical $0.000008 Support Level

1y ago

bullish:

bearish:

The cryptocurrency market has been observing increased volatility in recent weeks, particularly with the meme coin Pepe (PEPE).
Recent on-chain data indicates potential for further decline, despite current price support levels.
A notable quotation suggests that PEPE’s failure to sustain its fair value gap might lead to more bearish movements.

Explore the latest developments in PEPE’s price action and what it means for the future of this trending meme coin.

PEPE Struggles to Maintain Support Levels

The recent price action of Pepe (PEPE) shows a potential for establishing a range between $0.000008 and $0.000013. Despite attempts to hold the fair value gap as a support zone, PEPE has plummeted back down to the local lows of $0.000008, a level that had previously offered some stability after July’s downturn. On-chain indicators and liquidation data point towards an extended bearish phase, making it critical to monitor these support thresholds closely.

On-Chain Data Analysis

Delving into the on-chain data reveals that the $0.000008 level is still a pivotal support point for PEPE. The fair value gap, observed during a previous rally to $0.000013, has failed to counteract the downward pressure significantly. With next support levels pegged at $0.00008 and $0.0000678, both levels align with key Fibonacci retracement markers from the May rally. This deeper analysis confirms a bearish overhang in PEPE’s market behavior.

Factors Driving PEPE’s Downward Movement

Several indicators hint at possible further declines in PEPE’s price. The MACD (Moving Average Convergence Divergence) has dipped below the neutral zero line, indicating bearish momentum. Concurrently, the CMF (Chaikin Money Flow) stands marginally negative at -0.02, reinforcing the bearish stance. In addition, the In/Out of the Money Around Price (IOMAP) model highlights the $0.000008 zone as a critical support region, which may continue to be tested in the near term.

Whale Activity and Market Sentiment

An examination of PEPE’s holdings distribution further elucidates the bearish outlook. The 30-day balance change among various wallet categories shows that whales (holders of significant quantities) have been offloading their assets, while only smaller investors, holding up to 10 million PEPE, have been accumulating. This behavior underscores the prevailing selling pressure and suggests cautious investor sentiment.

Liquidation Levels Offer Insight

Data from the 3-month liquidation heatmap presents a grim picture. The liquidity pool between $0.000009 and $0.00000945 is insufficient to counter the bearish momentum significantly. The next area of interest aligns with the Fibonacci level of $0.00000678, between $0.00000677 and $0.0000074, indicating potential further declines and reinforcing the bearish expectations.

Conclusion

In conclusion, PEPE’s recent price action and on-chain data signal an extended bearish trend with potential further declines. Investors should closely monitor the critical support levels and whale activity for future movements. A comprehensive approach, incorporating both technical indicators and market sentiment, is essential for navigating the cryptocurrency’s volatile landscape.

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