The Pepe support zone around $0.000010652 could be key to a potential price reversal, with technical indicators such as the Stochastic RSI suggesting that PEPE is currently oversold and could bounce back.
Analysts noted that whale activity was high, with the stablecoin supply held by whales surging to 52%, indicating significant accumulation by large investors.
Pepe (PEPE), one of the most popular memecoins, has not been immune to the recent cryptocurrency market downturn. After testing the key resistance level of $0.00001240, PEPE’s price plunged 23% and is currently hovering around the key support level of $0.000010652, according to Crypto News Flash.
This support level is noteworthy because it acted as a strong resistance level before turning into support and could serve as a key point for a potential price reversal.
Technical indicators such as the Stochastic RSI indicate that PEPE is currently oversold, suggesting a possible rebound. This suggests that the recent sharp price decline may have been overdone, and a rebound opportunity exists.
Analysts have turned to Santiment’s whale activity data for insight into future trends. The percentage of stablecoin supply held by whales has surged to 52%, suggesting that large investors are hoarding stablecoins in preparation for potential buying activity that could support prices. Additionally, an increase in whale trading volume indicates active participation, further fueling optimism about a possible reversal.
According to data from Coinglass, PEPE has experienced significant volatility. The surge in short and long liquidations since February highlights the rapid changes in market speculation and sentiment. Notably, significant long liquidation in early March coincided with a decline in PEPE prices, suggesting a possible correction phase ahead of an underlying bullish trend.
PEPE Coin long positions continue to increase
The latest data from Coinglass shows that the rise in long positions has outpaced short positions, suggesting that bullish momentum could push PEPE’s price higher in the near term.
Despite the ongoing market volatility and large liquidations, strong support from major investors as indicated by whale activity and stablecoin reserves suggests that current levels are on solid footing. Maintaining this support could pave the way for a potential price surge for PEPE. However, a break below this critical support level in bearish conditions could lead to further declines.
The next few days will be critical for PEPE, with investors closely watching whether bullish forces will be able to take hold and trigger a reversal, or whether bearish pressures will prevail. The outcome will depend on market dynamics and investor sentiment over the next few trading sessions.
On the other hand, the memecoin space as a whole has been facing selling pressure recently. Well-known analyst Ki Young Ju predicts that the dominance of memecoins may soon decline.
