- PEPE is under pressure as it tests the key support level of $0.00001108, with bearish indicators suggesting a possible drop to $0.000010.
- However, a surge in whale accumulation signals potential for a bullish reversal if support holds.
The memecoin market is trembling as PEPE faces increasing bearish pressure. Following Bitcoin’s broader market pullback, PEPE is now in the spotlight, testing its resilience at the critical $0.00001108 support level. Will the frog-themed token survive the storm—or is a deeper dive imminent?
Evening Star Sparks Fear of Further Drop
On the daily chart, PEPE’s recent performance is raising alarms. After failing to clear the 50% Fibonacci retracement level at $0.00001212, the token suffered a sharp 3.59% decline midweek. This movement formed an ominous evening star pattern—often a precursor to trend reversals—right at a key resistance point.
If bearish momentum continues, PEPE may lose its grip on the 50-day EMA at $0.00001146. Worse still, the 200-day EMA at $0.00001108 could break next, potentially opening the door to a plunge toward the psychological support level of $0.000010.
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Bearish Indicators Mount Across the Board
Technical signals are reinforcing this bearish outlook. The Relative Strength Index (RSI) remains below the neutral 50 mark, signaling increasing downside momentum. Additionally, derivatives data paints a gloomy picture: open interest has slipped by 2.19% to $499 million, while long liquidations surged to $2.6 million—far outpacing short liquidations.
Funding rates have also dipped to 0.0079%, indicating fading bullish sentiment in the futures market. All signs point to heightened volatility and a tug-of-war between bulls and bears.
Whale Activity: A Silver Lining?
Yet amid the selloff concerns, there’s a flicker of hope. On-chain data from IntoTheBlock reveals a 33% spike in large holder netflows over the past week. A staggering 1.1 trillion PEPE tokens were accumulated by whales on June 4 alone—suggesting some big players see this dip as a buying opportunity.
Should the accumulation trend continue and bullish momentum return, PEPE could mount a recovery attempt above $0.00001212, with an eye on last month’s high of $0.0000155.
As PEPE dances dangerously close to a critical support level, the coming days will be pivotal. A breakdown could send prices tumbling toward $0.000010, while strong whale confidence may fuel a surprise rebound.