- Analyst observes that PEPE could eventually stage a bull run to match and overtake its all-time-high price.
- However, its on-chain indicators hint that a deep drop could occur before the expected rally.
The third largest memecoin, Pepe (PEPE), showed rare resilience in the face of the recent liquidation that hit the broad market, holding its ground to secure support at $0.0000080.
In the last 24 hours, this memecoin has recorded a massive gain of 10%, trading at $0.00000866.
According to our data, PEPE’s daily trading volume has surged by 10%, with $1.14 billion changing hands. Its market data also shows that PEPE’s total liquidation currently stands at $2.4 million. With that, $1.4 million came from a long position, while $1 million came from a short position. According to analysts, this indicates the existence of active trading while hinting at potential market volatility.
Commenting on the current PEPE price behavior, crypto analyst Sjuul observed shared similarities with the price movement in April. As confirmed by CNF, PEPE touched the $0.0000060 support level on multiple occasions between March and May.
After establishing this level, it embarked on a bull run to an all-time high price. According to him, bottoms take time to form, suggesting that PEPE may require some time to complete the bottom formation before the expected rally.
Look at $PEPE back in April before the incredible run to an all-time high, and see it took several days to form a proper bottom before starting to rise.
Looking critically at the PEPE price chart and its rally in May, we observe that the $0.000006 appears to be the 78.6% retracement level. However, the potential range formation is between $0.000008 and $0.000013, with the MACD falling below neutral.
There Could be a Serious Price Drop for PEPE
According to on-chain activities, PEPE whales have been distributing their assets. This is evident in the 30-day change in the balance of holdings among the various PEPE holding wallets. Only holders with up to 10 million PEPE have increased their portfolios within the period.
Subjecting its three-month liquidation heatmap under critical scrutiny also hints at a possible deep fall. As shown in the Hyblock data above, the liquidity pool at $0.000009-$0.00000945 was far from reversing the recent downward pressure.
The region between $0.00000677 and $0.0000074 appears to be the next line of interest, aligning with the Fibonacci level at $0.00000678.
One interesting observation is that the bearish on-chain signals have not been different from the July reading. At that time, a massive withdrawal from exchanges was spotted, with a whale depositing 47 billion PEPE ($2.22 million) on Binance for a potential snowball into an “all-out sell-off.”
The supply of meme coins in exchanges has generally increased, which could result in selling pressure. As we reported recently, two whales moved $25.95 million worth of PEPE to Binance for onward liquidation. Another CNF publication mentioned that a whale had also deposited a whopping 400 billion PEPE ($4.22 million) to Binance to secure profit.
Furthermore, the accumulation of non-exchange addresses has considerably declined, suggesting that large investors are not buying PEPE.
The Open Internet (OI) has also slipped into the negative zone, indicating that short positions outnumber long ones. According to Coinalyze data, OI has declined 7.3% in the last 24 hours.
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