PEPE rejected at $0.00000920, falls nearly 10% in 48 hours: What now?

PEPE Encounters Resistance at $0.00000920, Triggering a 9.17% Decline

After a bullish surge of 17.80% over the past three days, PEPE faced a setback at a crucial resistance level of $0.00000920. As a result, it witnessed a sharp drop of approximately 9.17% in the last 48 hours.

Technical Analysis Reveals a Bearish Picture

PEPE's failure to break through the $0.00000920 resistance level resulted in a rejection and subsequent price decline. Metrics from IntoTheBlock suggest a bearish trend, including a Net Network Growth of -1.08%, investors "in the money" at -0.50%, and large transactions indicating a bearish signal of -0.57%.

Liquidations Surge as Price Drops

The price decline sparked a wave of liquidations on derivatives exchanges, particularly in leveraged long positions. This suggests that investors were overly optimistic and had taken on excessive risk. Continued price weakness may trigger further selling signals.

Sentiment Cools Amid Price Decline

PEPE's price drop coincided with a decline in sentiment among holders. Santiment's Active Addresses data shows a significant decrease in network activity, indicating waning interest and engagement. This could hinder a short-term recovery.

Market Outlook for PEPE

The confluence of bearish signals suggests that PEPE faces potential downside in the near future. The next critical support level to monitor is $0.00000720. If this level fails to hold, PEPE may retest its recent lows around $0.00000650. To trigger a bullish reversal, PEPE needs to reclaim the recently rejected $0.00000920 resistance level.