The crypto market’s recent downturn hasn’t spared Pepe (PEPE), the popular memecoin. After retesting a key resistance level at $0.00001240, PEPE’s price has tumbled 23%, currently hovering near a critical support zone of $0.000010652.
This support level is significant because it previously acted as strong resistance before flipping to support. Now, it could be the line in the sand for a potential price reversal.
Oversold RSI Points to Potential Bounce
Technical indicators like the Stochastic RSI suggest PEPE is currently oversold, hinting at a possible price reversal. This means the recent price drop might have been overextended, creating an opportunity for a bounce back.
Whales Gather Stablecoins, Signaling Buying Power?
Analysts looked towards whale activity data from Santiment to gauge the next move. Interestingly, the percentage of stablecoin supply held by whales has jumped to 52%. This suggests large investors are accumulating stablecoins, potentially preparing for buying sprees that could bolster the price. Additionally, a rise in whale transaction count indicates active participation, adding another layer of positive sentiment for a potential reversal.
Coinglass data paints a picture of volatility surrounding PEPE. Spikes in both short and long liquidations since February highlight market speculation and rapid shifts in sentiment. Notably, significant long liquidations in early March coincided with PEPE’s price drop. This could indicate market corrections towards a bullish trend on the horizon.
Long Positions Gaining Ground?
The long to short ratio data from Coinglass reveals a recent increase in long positions outweighing short positions. This bullish pressure could translate to a price increase if it continues.
The Verdict: Reversal or Further Decline?
While market volatility and recent liquidations pose challenges, underlying support from major investors, evidenced by whale activity and stablecoin holdings, suggests a crucial support level is in place. If this support holds, PEPE could experience a price surge. However, a breach of this level by bearish momentum could lead to a further price decline.
The coming days will be crucial for PEPE. Will the bulls regain control and trigger a reversal, or will the memecoin succumb to the bearish pressure? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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