Pepe Price Plunges 23%: Will Whales Rescue the Memecoin?

• Pepe support zone around $0.000010652 could be pivotal for a potential price reversal, with technical indicators like the Stochastic RSI suggesting PEPE is currently oversold and might bounce back.
• Analysts note that whale activity, with stablecoin supply held by whales surging to 52%, indicates significant accumulation by large investors.

Pepe (PEPE), one of the most popular memecoins, has not been immune to the recent downturn in the cryptocurrency market. After testing a critical resistance level at $0.00001240, PEPE’s price plummeted by 23%, now hovering near a crucial support zone around $0.000010652, per the Crypto News Flash report.

This support level is notable as it previously acted as formidable resistance before transitioning to support, potentially serving as a pivotal point for a potential price reversal.

Technical indicators such as the Stochastic RSI suggest that PEPE is currently oversold, hinting at a possible bounce back. This indicates that the recent steep decline in price may have been excessive, presenting an opportunity for recovery.

Analysts have turned to whale activity data from Santiment for insights into future movements. The percentage of stablecoin supply held by whales has surged to 52%, signaling significant accumulation by large investors in preparation for potential buying activities that could support prices. Moreover, an increase in whale transaction volume indicates active engagement, further bolstering optimism for a potential reversal.

According to Coinglass data, PEPE has experienced notable volatility. Spikes in both short and long liquidations since February underscore market speculation and swift changes in sentiment. Notably, substantial long liquidations in early March coincided with a decline in PEPE’s price, suggesting a potential corrective phase preceding a potential bullish trend.

PEPE Coin Long Positions Building Up

Recent data from Coinglass shows an uptick in long positions surpassing short positions, signaling bullish momentum that may propel PEPE’s price higher in the near term.

Despite ongoing market volatility and significant liquidations, strong support from major investors, as indicated by whale activity and stablecoin reserves, suggests a solid foundation at current levels. Maintaining this support could pave the way for a potential price surge in PEPE. However, a breach of this critical support level under bearish conditions could lead to further downward movement.

The next few days will be pivotal for PEPE as investors watch closely to see if bullish forces can assert dominance and initiate a reversal, or if bearish pressures will prevail. The outcome will hinge on market dynamics and investor sentiment in the coming sessions.

On the other hand, the meme coin sector in general has been facing selling pressure recently. Popular analyst Ki Young Ju predicts that the meme coin dominance could be declining very soon.

Memecoin dominance in alt markets is declining.

CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago.

Pack it up lads, it’s over. pic.twitter.com/H5d81mRIJB

— Ki Young Ju (@ki_young_ju) June 19, 2024