As we step into October, PEPE holders find themselves navigating a turbulent market landscape. After a significant price surge earlier this month, PEPE is facing challenges that could affect its trajectory in the near future. This analysis delves into the latest developments and what they mean for investors and traders alike.
Bears Overpower The Bulls
Since June, the $0.000011 price level has emerged as a critical resistance point for PEPE. Despite several attempts to break above this threshold, each retest has been met with increased selling pressure, demonstrating the bears’ dominance. Over the past week, PEPE’s price has surged by an impressive 36%, inching closer to this pivotal resistance level. However, during Sunday’s trading session, the coin faced a notable setback, ultimately closing at $0.000010—a 2% decline within 24 hours.
Whale Activity Sparks Concern
What’s particularly noteworthy is the activity of PEPE’s large holders—those who control more than 0.1% of the circulating supply. This influential group has been gradually liquidating their holdings over the past week, evidenced by a staggering 171% decline in the net flow of tokens among these addresses. Such movements often signal bearish sentiment, as large holders tend to sell during periods of anticipated price declines.
When the netflow of large holders drops, it typically suggests that whales are offloading their assets, adding to the selling pressure on the market. This decline in netflow coincides with negative readings from PEPE’s Balance of Power (BoP), currently at -0.54. The BoP, which gauges the relationship between buying and selling pressure, indicates that the bears have control, further affirming the prevailing bearish sentiment.
Potential Price Movements Ahead
If selling momentum continues to escalate, analysts suggest that PEPE could experience a sharp decline, potentially dropping by 22% to the $0.000008 level. Should the bulls fail to defend this crucial support, the decline could extend by an additional 32%, leading to a worrying scenario for holders.
However, it’s not all doom and gloom. A resurgence in buying activity could provide the necessary momentum to push PEPE toward the $0.000011 resistance. If buyers manage to break through this level, it could set the stage for a potential climb to $0.000014, breathing new life into the bullish narrative.
Also Read: Pepe Faces $95M Liquidity Wall – Will The Meme Coin Break Through Or Crash To $0.0000095?
As market activity cools with the arrival of October, PEPE holders should closely monitor market signals and whale activity. The current trend suggests that bears have the upper hand, and potential selling pressure looms. Yet, the possibility of a bullish reversal remains if buying activity gains traction. Staying informed and agile will be crucial for investors navigating the volatility of the meme coin market.
In conclusion, the coming weeks could prove pivotal for PEPE. Whether it can reclaim its bullish momentum or continues to succumb to selling pressure will depend on the collective actions of traders and large holders alike. As always, investors should tread carefully and keep an eye on the unfolding market dynamics.
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.
About The Author
