PEPE Coin Dips 40% As Altcoins Crashed: Time To Grab A Discount

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  • PEPE coin price was trading in the demand zone and surged by 13% in a few hours.
  • PEPE’s 24-hour trading volume has increased by 193% to $2.85 billion.

The Pepe coin price has remained negative since December and lost around 68%. Amid this bearish trend, the PEPE has lost the 200-day EMA and many support levels. It has dropped to the previous support zone and has received buying pressure. This meme coin has also advanced by 13% in a few hours.

During one of the most bearish weekends in the cryptocurrency’s history, PEPE was one of the coins targeted by the bears. The meme coin dropped to its lowest price since November 9th.

Nearly all of PEPE’s gains from November, the second-most bullish month for the meme coin, have been lost. Bullish expectations are further fueled by the weekend sell pressure, which highlights a bearish start to February.

pepe coin
Source: X

Only two days have passed since a cryptocurrency analyst, @CryptoKaleo, shared his thoughts on the prolonged PEPE declines. He said there was a good chance that more sell pressure would be applied to meme coins.

PEPE Price Received Buying Pressure in Demand Zone: What’s Next?

When writing, the PEPE coin was trading at $0.00000387. It has dropped by 19.67% over the past 24 hours. The market capitalization was $4.14 billion, and the 24-hour trading volume was $2.85 billion.

pepe coin
PEPE/USD 1-D Chart | Source: TradingView

The PEPE price has received buying pressure in the demand zone of $0.00000800. If the price forms any bullish candlestick in the demand zone, strong buying pressure can be anticipated. A bullish rally can be observed once the price departs from the demand zone.

On the other hand, if the Pepe coin price slips below the major support level of $0.00000800, sellers may lead. Suppose the price sustains below the major support level, most of the traders and investors might prefer to book profit.

PEPE Futures Open Interest Analysis

The most recent crash might have been a leverage shake-down, according to an analysis of the most recent derivatives data. Over the course of the last day, the cryptocurrency market saw liquidations totaling nearly $1 billion. Long liquidations for PEPE totaled about $5 million.

Shorter time frames, like the 1-hour and 4-hour ones, showed that there was also a notable increase in short liquidations. It further supported the notion that a leverage shake-down was taking place. Additionally, over the weekend, open interest fell from $472.49 million to $405.72 million.

PEPE Price Analysis Based on Recent Trends

The recent fluctuations in PEPE coin prices reflect a challenging period for altcoins, marked by a significant drop of 40% amidst broader market sell-offs. Despite this bearish trend, there are signs of potential recovery.

The price has recently bounced back by 13% after hitting a key demand zone. The increase in trading volume suggests renewed interest, indicating that some investors could see this as an opportunity to buy at a discount.

However, the market remains cautious, as PEPE’s price is still struggling below crucial support levels. Besides, any sustained drop below these levels could trigger further selling. There may be bullish potential if the price demonstrates resilience in the demand zone. Traders should still remain vigilant and look for confirmation before making any decisive moves.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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