Bitcoin’s Drop Affects PEPE Coin’s Performance

Bitcoin's Drop Impacts PEPE Coin's Performance

After Bitcoin (BTC) dipped to $48,800 on August 5th, Pepe (PEPE) experienced a sharp decline, reaching the 78.6% Fibonacci retracement level of $0.0000068.

PEPE Coin Sentiment

Despite the decline, PEPE's 3-day weighted sentiment indicator has been shifting positive, suggesting growing optimism on social media. Additionally, inactive circulation remained steady, while the average cryptocurrency age increased, indicating accumulation activity.

Potential Recovery

The stable inactive circulation and rising average cryptocurrency age could contribute to PEPE's recovery. However, the coin previously encountered resistance at $0.000013 in July and has yet to overcome it.

Technical Analysis

PEPE's daily outlook suggests a potential rise. For this to materialize, the price needs to surpass $0.000009. The MACD indicator also indicates a weakening downtrend and increased OBV (On-Balance Volume).

Bullish Defense

One encouraging sign is PEPE's successful defense of the $0.00000678 level, a key Fibonacci retracement. This suggests that despite the recent weakness, the bulls remain strong.

Liquidation Zone

A 7-day review shows a high liquidation zone between $0.0000085 and $0.0000094. While the current uptrend is positive, a rise to these levels may trigger significant liquidation of short positions.

Conclusion

Investors may observe a price jump as liquidity is cleared. However, the sustainability of the rise depends on market demand and OBV indicators. If the uptrend continues in line with the market, PEPE could potentially regain the $0.00001 level.