PEPE's rejection from $0.00000891 has increased the likelihood of further downside.
A whale sold off $3.03 million at a loss of $434K, while another trader lost $3.23 million.
Pepe [PEPE] dropped from $0.00000927 after breaking the declining resistance, but the market could not maintain the upward trend past this resistance point.
After retreating to the 0.50 Fibonacci support level at $0.00000698, the price has attempted to find its footing.
PEPE dropped over 50% in five days from a two-week upward trend and is likely testing the breakout level.
PEPE's support has the potential to reach two resistance zones at $0.00000811 and $0.00000927 if the price recovers from the $0.00000698 support level at the 0.50 Fibonacci support.
If the 0.50 Fibonacci support level cannot hold, the price may continue to decline, and PEPE could return to the $0.00000653 and $0.00000593 levels at the 0.618 and 0.786 Fibonacci levels, establishing them as major support zones.
Source: Trading View
The MACD indicator also shows weakening momentum on the histogram, accompanied by a bearish crossover between the MACD line and the signal line.
If the downward pattern continues, PEPE may test the $0.00000593 level as a critical support zone.
However, when the bullish crossover of the MACD appears, PEPE's price action may improve, allowing this cryptocurrency to aim for higher resistance zones.
The breakout from the declining resistance has created the aforementioned upward trend; however, PEPE has been heading towards $0.00000927 until encountering resistance, causing a pause and then a reversal.
The 0.50 Fibonacci level could become an entry point for buyers to initiate a recovery, potentially pushing the price towards $0.00000927.
PEPE whale sold at a loss
Due to the downward pressure, a PEPE whale sold 438 billion tokens and the trade led to a loss of $434K, causing widespread sell-offs in the market as noted by Lookonchain on X (formerly Twitter).
Another trader holding a massive PEPE investment worth $21.6 million also had to bear an unrealized loss of $3.23 million.
The trader has prevented liquidation by pumping an additional $3.8 million USDC into Hyperliquid, converting part of their PEPE position into cash and accepting a loss of $1.3 million.
The total supply of PEPE tokens has seen over 1 trillion tokens sold off, pushing the price below several important support zones.
The large-scale liquidation has created negative sentiment until investors began buying tokens near the new support zone.
Source: X
Risk management is a crucial factor in this whale's leveraged trading, as the unrealized loss has reached $3.23 million. Traders are showing negative sentiment while monitoring the potential for further price declines.
Market sentiment is at opposing directions as traders either believe the price may continue to decline or that selling pressure may peak, leading to a market recovery.
The trader has introduced additional capital to reduce risk as they want to stabilize their current trading position.
PEPE establishes new support levels that could slow down the bearish force while creating conditions for an upward move towards recovery.
Source: https://tintucbitcoin.com/whale-xa-1-nghin-ty-pepe-gia-giam-50-dieu-gi-tiep-theo/
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