PEPE on a bear sauce, dips below $0.0000100

PEPE received a dip in the bear-delicious sauce. The price of Pepe has dropped by over 10% and on Thursday morning it broke below the $0.0000100 support line. A negative financing fee and a declining long-to-short ratio for PEPE are shown by on-chain statistics, suggesting possible bearish momentum that may cause a price drop in the upcoming days.

However, increasing trading activity indicates that the big players are waking up to add to their PEPE holdings or cash in on the gains. A significant quantity of PEPE coins were moved between hot wallets by Binance before the surge of intense PEPE trading activity.

PEPE’s derivatives trading has resulted in liquidations of more than $4 million. Long position investors lost $3.13 million of the $3.97 million in total liquidations. Even with the 11% drop in price over a day, short sellers had to liquidate $837K worth of leveraged positions. PEPE’s market price is still falling even though trading volume on derivatives has flickered a fresh surge of interest with a 73% rise in a single day.

According to Santiment’s research, there has been a surge in selling pressure on the meme-coin since last week. Notably, there was a notable spike in supply on exchanges.

The meme coin was still under strong selling pressure even when its supply outside of exchanges decreased. This bearish thesis is supported by the Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart, below their respective neutral thresholds of 50 and zero. This indicates that bears are still in the lead, which could cause the meme currency with the frog motif to drop even further.

Price action shows that if the prognosis for the cryptocurrency market as a whole remains unfavorable, PEPE may break below $0.00000801 and drop a further 15% to retest its low of $0.00000761 on May 8. Given that a favorable 70% of current PEPE Token holders are profiting at this pricing, large holders may be able to save PEPE.

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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