Short-sellers are making a killing as the cryptocurrency market, including the memecoin PEPE, continues its downward spiral. The recent weakness in Bitcoin has emboldened bearish sentiment, and PEPE has not been spared.
PEPE Teeters On The Brink
At the time of writing, PEPE has shed 15% of its value, pushing its price to a critical support level from October. A breach of this support could trigger a further decline, potentially taking the price to $0.0000080 or even lower to $0.0000070. This would translate to significant gains for short-sellers who entered the market at higher levels.
The Looming U.S. Election Uncertainty
The upcoming U.S. election adds another layer of uncertainty to the already volatile market. While the election outcome could potentially trigger a market reversal, short-sellers are taking advantage of the current bearish momentum to secure profits.
Technical indicators like the Relative Strength Index (RSI) and the On-Balance Volume (OBV) are signaling bearish sentiment. The low RSI reading suggests that the asset is oversold, while the weak OBV indicates a lack of buying pressure.
Diminishing Interest in PEPE
The declining number of active addresses on the PEPE network is another bearish sign. This suggests that investor interest in the memecoin is waning, further supporting the short-selling thesis.
While short-sellers are enjoying a profitable period, it’s important to exercise caution. The cryptocurrency market is highly volatile, and sudden market reversals can quickly erase gains. As such, it’s advisable to take partial profits to lock in gains and mitigate risk.
Also Read: PEPE Whale Moves 1.2 Trillion Tokens – What This Means For The Meme Coin’s Next Move
For long-term investors, the current market downturn presents a buying opportunity. The discounted prices could offer attractive entry points for those who believe in the long-term potential of PEPE and the broader cryptocurrency market.
In conclusion, the ongoing crypto winter has created a favorable environment for short-sellers. However, it’s crucial to remain vigilant and adapt to changing market conditions. As the U.S. election approaches, investors should closely monitor market developments and be prepared for potential volatility.
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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