The price of PEPE dropped 20% in six days as it tested the $0.000010 support. Whale activity surged, raising concerns of a deeper correction.
At a critical juncture, PEPE risks losing the $0.000010 psychological level as selling pressure intensifies. Will the increased whale activity, combined with the ongoing downtrend, push Pepe to a new monthly low?
PEPE Price Analysis
On the daily chart, Pepe is struggling to stay above the $0.00001037 support level. With an intraday pullback to $0.00001024, PEPE has recorded its lowest trading price in the past 30 days.
This reflects mounting overhead selling pressure, which has driven a 20% decline over the last six days. With market sentiment turning increasingly bearish, a daily close below the psychological $0.000010 level could extend the correction to the $0.0000090 support zone — a level that previously acted as significant resistance.
If bearish momentum continues, the downside risk could stretch further to $0.00000570, representing the lowest closing price of the year to date.
On-Chain Data Signals Whale Sell-Off
According to data from IntoTheBlock, the number of large transactions (over $100,000) has significantly increased over the past 30 days. Since early May, the number of these transactions has risen compared to the relatively quiet period between February and April.
Typically, a surge in large transactions can indicate the formation of a cycle top or bottom. Given the rising selling pressure, the uptick in large transactions may point to potential sell-offs by Pepe whales.
As such, the on-chain data supports the case for increasing downside risk in the frog-themed meme coin.
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PEPE Number of Large Transactions
Fear Emerges in PEPE Derivatives
CoinGlass data also shows a decline in PEPE’s open interest by 5.70%, now at $483.09 million. Over the last 24 hours, liquidations totaled $2.28 million in long positions, compared to just $486,000 in short liquidations.
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PEPE Derivatives
This imbalance has pushed the long-to-short ratio down to 0.9384, reinforcing the bearish sentiment. Overall, the PEPE derivatives market suggests traders are bracing for a significant correction.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
