- The price action showed there is a possibility of a range formation, with $0.000008 as its lows.
- On-chain data and the liquidation levels showed a deeper price drop was likely.
As a seasoned analyst with years of market observation under my belt, I find myself looking at the PEPE price action and feeling a sense of deja vu. The coin has once again found itself teetering on the edge of a precipice, with the $0.000008 level acting as its lifeline.
The price of PEPE [PEPE] couldn’t maintain its difference from the fair market value as a base. Instead, it plummeted directly through this point, hitting another local low at $0.000008. This was the same level where the meme coin rebounded following the losses in early July.
As a researcher, I am optimistic about potential future events, yet a detailed examination of the liquidation heatmap and distribution of holdings indicates that the bears may continue to maintain their dominance for a while longer.
The $0.000008 level is still a firm support
During PEPE‘s surge to $0.000013, the gap in fair value (the white space) had minimal impact on easing bearish pressure. The levels at $0.00008 and $0.0000678 are potential areas of support, with the latter being a significant 78.6% retracement level, based on May’s rally.
On the MACD front, it dipped below zero, hinting at a possible downtrend. However, the CMF was merely at -0.02, indicating a weak negative momentum. Glancing at the daily chart, there seems to be a bearish inclination, yet it also suggests a potential price range may form between approximately 0.000008 and 0.000013.
The in/out of the money around price also highlighted the region around $0.000008 as a support.
Reasons why a deeper price drop is possible
Over the last month, an analysis of changes in the distribution of PEPE holdings among different wallets reveals a trend: Whales seem to be transferring or selling their tokens. However, PEPE holders with relatively smaller amounts (up to 10 million PEPE) have been increasing their holdings within this period.
Most of them have been offloading the token, with only those holding 10 trillion or more amassing it. This indicates a strong selling trend over the last month, potentially signaling further losses ahead.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
In simpler terms, the 3-month sell-off chart issued a comparable alert. At the price range of $0.000009 – $0.00000945, there wasn’t sufficient liquidity to counteract the falling trend.
As I delve deeper into my study, the focus now shifts towards the price range of $0.00000677 to $0.0000074. This coincides remarkably with a significant Fibonacci level at approximately $0.00000678, which strengthens my bearish predictions for the market trend.
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2024-08-05 10:15