Pepe (PEPE), the popular frog-themed meme coin, faces a critical price level this week after a sharp six-day decline. The token, down 20% over the period, is now testing the key psychological support of $0.000010. Escalating whale activity and weakening derivatives data suggest further downside risk, raising questions about PEPE’s near-term price outlook.
PEPE Tests Key Support Amid Bearish Momentum
PEPE is currently hovering near $0.00001037 on the daily chart, after intraday lows of $0.00001024—its lowest level in the past 30 days. The consistent selling pressure has eroded support, leaving the token vulnerable to a daily close below $0.000010. If this occurs, analysts expect PEPE could fall toward $0.0000090, a former resistance zone, now turned potential support.
Continued bearish momentum could even drag PEPE toward the year’s lowest closing price near $0.00000570, should the market fail to stabilize. For now, the path of least resistance appears downward as selling intensifies.
Whale Activity Raises Red Flags
On-chain data from IntoTheBlock indicates a significant rise in large PEPE transactions—valued over $100,000—since early May. This increase follows a relatively quiet February–April period. Such spikes in whale activity often precede major market shifts, signaling either a top or a bottom.
In this case, mounting sell pressure from large holders suggests whales may be reducing their positions, further adding to PEPE’s downside risk.
Also Read: PEPE Whale Activity Surges 73% as Memecoin Tests Key Support
Bearish Sentiment in Derivatives Market
Derivatives data paints an equally cautious picture. CoinGlass reports a 5.70% drop in PEPE’s open interest to $483.09 million, signaling reduced speculative appetite. Over the past 24 hours, liquidations totaled $2.28 million in long positions—compared to only $486,000 in short liquidations—pushing the long-to-short ratio to a bearish 0.9384.
This imbalance reflects growing fear among leveraged traders, with the derivatives market increasingly positioned for further downside.
Critical Days Ahead for PEPE
PEPE now faces a pivotal test at the $0.000010 level. A decisive close below this threshold could trigger a deeper correction, while any bullish reversal would need to reclaim lost momentum quickly. With whales offloading and derivatives sentiment turning bearish, PEPE holders should brace for heightened volatility in the coming days.
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
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
