Pepe Price Breaks Down: Is This the Final Accumulation Phase?
Recently, the price of Pepe broke out of a bearish reversal pattern, suggesting the potential for a continued downtrend. This downward breakout has resulted in a 9% increase in the number of PEPE holders facing losses, as the percentage of profitable investors dropped from 67% on Friday to 58% by Monday. However, with recent strength in the broader market, there’s a possibility of a rebound, especially with a notable uptick in PEPE whale activity.
Despite its current struggle to hold above the 200-day Exponential Moving Average (EMA) on the daily chart, Pepe remains one of the more resilient crypto assets outside of Bitcoin, maintaining its position near this crucial indicator even amid the harshest crypto downturn of 2024.
Over the past 24 hours, the Pepe coin price fell by 5.8%, reaching $0.00000816, but this decline did not deter a savvy whale from accumulating more tokens. A whale wallet, known as “cookislandstrust.eth,” has purchased over 420 billion PEPE (valued at $3.41 million) within the last week, now sitting on a profit of over $913,000.
This strategic investor acquired the bulk of these tokens in two major transactions: 300 billion PEPE on August 5 and an additional 120 billion on August 12, totaling 420 billion tokens. This accumulation followed news of another whale unloading 5,000 ETH, sparking speculation that these funds might be funneled into meme coins like SHIB and DOGE.
Can Pepe Bounce Back? Futures Data Suggests Potential
In the past 24 hours, PEPE’s open interest (OI) dropped by 11.89%. This decrease, coupled with the falling price, indicates that long positions are likely being closed to mitigate losses.
The Long/Short ratio on Coinalyze has increased over the last 24 hours, signaling that longs are closing at a loss, while shorts are locking in profits, contributing to the decline in OI. When shorts close their positions, they buy back the asset, which can be bullish for the price.
Interestingly, the funding rate for PEPE remains negative, meaning shorts are paying longs to stay open. Despite the reduction in the Long/Short ratio, shorts still outnumber longs, suggesting that the PEPE price could continue to drop in the near term until it reaches a potential rebound zone.
PEPE Price Prediction: A Steep Correction Ahead?
From a technical standpoint, the overall trend remains bearish, as evidenced by the price consistently trading below both the 50-day (green) and 200-day (black) EMAs.
Pepe faces significant resistance around $0.00000846, near the 50-day EMA. On the downside, immediate support lies at $0.00000610, as indicated by the horizontal support line on the chart, which aligns with the expected price drop.
The price chart for Pepe shows a bearish pattern forming after the completion of a rising wedge, typically a sign of a downward reversal. The last few candlesticks reveal rejection at higher levels, reinforcing bearish sentiment.
The Relative Strength Index (RSI) stands at 41.95, suggesting the asset is nearing oversold territory, though there is still room for further decline. Additionally, the Chaikin Money Flow (CMF) is at -0.21, indicating negative money flow and prevailing selling pressure.
A clear reversal would be signaled if the price breaks above both the 50-day and 200-day EMAs. Should there be a strong bounce accompanied by rising volume and the RSI exiting the oversold zone, the next bullish target could be $0.00001200.
Leave a comment