The cryptocurrency PEPE has recently breached a critical support level of $0.00001075, sparking concerns among analysts who predict a potential 20% decline in the near future. If PEPE’s price were to surge to $0.0000118, it would trigger the liquidation of $13.8 million in short positions.
As we step into August, the overall market sentiment appears bearish, with significant selling pressure. Amidst this downturn, a notable transaction was observed: a crypto whale transferred a substantial amount of PEPE to Binance. This move was highlighted by the on-chain analytics firm Lookonchain.
Whale Activity and Market Impact
In a recent post on X (formerly Twitter), Lookonchain reported that a crypto whale moved an impressive 400 billion PEPE tokens, valued at $4.22 million, to Binance. This transaction seems to be a strategic profit-booking maneuver in response to the prevailing bearish market sentiment. The whale’s action followed the breakdown of the crucial support level at $0.00001075.
Historical data reveals that on March 1st, the same whale had withdrawn 795.92 billion PEPE tokens worth $2.55 million from Binance. Despite the recent deposit, the whale still holds a significant 395.93 billion PEPE, valued at $4.18 million. Prior to this massive transfer, the whale’s unrealized profit was approximately $5.85 million, reflecting a 230% return on investment.
PEPE’s Price Performance
At the time of writing, PEPE is trading around $0.00001051, having experienced a 7.5% price drop in the last 24 hours. Interestingly, the trading volume has surged by 14% during the same period, indicating heightened investor and trader activity.
Technical analysis suggests a bearish outlook for PEPE, with a high probability of a further 20% decline in the coming days. This bearish sentiment is attributed to the recent breakdown of the key support level at $0.00001075 and the overall market conditions. Based on historical price trends and momentum, PEPE might find its next support near the $0.0000852 level, where the 200 Exponential Moving Average (EMA) is positioned.
Key Liquidation Levels
In addition to technical analysis, PEPE’s major liquidation levels are noteworthy. On the lower side, the critical level is $0.000010, while on the higher side, it is $0.0000118. These levels reflect the buyer and seller positions on PEPE over the past week.
If the market sentiment remains unchanged, PEPE’s price could drop to $0.000010, leading to the liquidation of nearly $2.04 million in long positions. Conversely, if the sentiment shifts positively, PEPE’s price could rise to $0.0000118, resulting in the liquidation of approximately $13.4 million in short positions.
Market Cap in BTC Terms
Considering PEPE’s market cap in terms of Bitcoin (BTC), the current market dynamics and sentiment play a crucial role. If the bearish trend continues, PEPE’s market cap could see significant fluctuations, impacting its valuation in BTC terms.
In summary, PEPE’s recent breach of the $0.00001075 support level has set the stage for potential market movements. The actions of crypto whales, coupled with technical analysis and market sentiment, will be key factors to watch in the coming days.
