PEPE’s key resistance breach leads to price dip: Is a reversal likely?

PEPE Price Drops 23%, but Metrics Hint at Potential Reversal

The crypto market has faced a downturn, with many coins falling below crucial levels. Pepe (PEPE) was among the affected, experiencing a 23% price decline after retesting a resistance level of $0.00001240.

The price currently sits near a support level at approximately $0.000010652, a critical area as it had previously served as a strong resistance zone. This level now acts as a moving average support level, potentially providing a firm foundation for price reversals.

Technical Indicators Suggest Oversold Conditions

The stochastic RSI indicates that PEPE is oversold, implying the potential for a price reversal.

Whale Activity and Stablecoin Supply

Whales play a significant role in the market. Santiment's data reveals that whale investors now hold 52% of the stable supply, giving them substantial influence over price trends. This increase in stablecoin holdings correlates with increased buying power, possibly creating a potential support level.

Moreover, the whale transaction count for PEPE has risen, indicating active involvement from investors and a positive sentiment for a price reversal.

Liquidation Surge and Long Short Ratio

Coinglass data shows a surge in PEPE's total liquidations, reflecting volatility in the market. Short and long liquidations have both spiked since February, suggesting market speculation and fluctuating sentiments.

Long liquidations in early March coincided with PEPE's price drop, indicating potential bearish corrections on the horizon.

The long short ratio from Coinglass has exhibited recent spikes, implying that long positions are outweighing short positions. This could intensify bullish pressure and contribute to a price shift.

Conclusion

Despite the current market volatility and significant liquidations, PEPE has underlying support from major investors, as evidenced by whale activity and stablecoin supply percentages.

Metrics suggest a crucial support level for a potential price reversal. If PEPE can maintain its support, the price could surge. However, a break below support could result in further price declines.