• PEPE’s price could soar by 40% to hit $0.0000089 if it holds the $0.0000058-level.
• Traders seemed to be over-leveraged at $0.00000618 on the lower side and $0.00000655 on the upper side

In light of the prevailing market sentiment, Pepe (PEPE), the popular memecoin, may be poised for a massive price decline due to its recent price action and the activity of crypto whales. In fact, just recently, blockchain-based transaction tracker Lookonchain revealed that a crypto whale sold 723.67 billion PEPE tokens for 4.63 million DAI.

Despite these sell-offs, however, the memecoin’s price remained stable and gained by 2.25% to the upside. Meanwhile, the sell-off attracted significant attention from crypto enthusiasts and may have the potential to trigger selling pressure. 

PEPE price action and technical analysis

Looking at PEPE’s daily chart, it appeared as though nothing happened. Especially since the chart showed signs of recovery.

According to AMBCrypto’s price analysis, the memecoin seemed to be forming a bullish double-bottom pattern on the daily timeframe. At the time of writing, this pattern was not yet complete. It seemed to have a single leg with two bottoms at the key support level of $0.0000058 and appeared to be forming the second leg.

Historically, this level has always provided support for PEPE’s price. And, whenever the memecoin reaches this level, it records a price rebound or upward momentum.

However, this time, despite the bearish market sentiment, the memecoin’s price might be repeating history.

PEPE price prediction

Based on its recent price action and historical patterns, if the memecoin holds its key support level, history may repeat itself. Accordingly, PEPE’s price could soar by 40% to hit the $0.0000089-level in the future.

On the other hand, if PEPE’s price fails to hold its key support level of $0.0000058 and closes a daily candle below the $0.0000056-level, a massive sell-off could occur.

The daily chart revealed that a breakdown of these key support levels could push the memecoin down by 33%, potentially reaching the next support level at $0.00000368 in the future.

At press time, PEPE was trading near $0.0000064, following a surge of over 2.25% in the past 24 hours. However, over the same period, its trading volume dropped by 6.50% – A sign of lower participation from traders and investors, compared to the previous day.

$2.85 million worth of bearish bets

Finally, intraday traders seemed to be following whale activity, betting on the bearish side, as reported by the on-chain analytics firm Coinglass.

Data from on-chain metrics revealed that traders were over-leveraged at $0.00000618 on the lower side (support) and $0.00000655 on the upper side (resistance). They built $1.76 million and $2.85 million worth of long and short positions, respectively, over the past 24 hours.

To put it simply, despite the recent upside rally and potential price rebound, short sellers have been dominant. They may have the potential to push PEPE’s price even lower in the coming days.