Pepe Coin Price Drops 19% Below Key Support, What’s Next?

Key Insights

• Pepe coin price drops 19.90% to $0.00001267, breaching $0.000013 support temporarily.
• Whale makes $7.47M profit but still holds $6.41M PEPE, hinting at continued interest.
• Long/short ratio on OKX is 2.26, with bulls maintaining leverage despite short-term dip.

Pepe coin price plunged 19.90% in just two days, dropping below the $0.000013 support level. At press time, PEPE price traded at $0.0000128 after declining from a weekly high of $0.00001564. Currently, analysts are watching to see if bulls can break past the $0.000025 resistance as whale holdings and signs of bullish interest increase.

Whale Locks $7.47M as PEPE Coin Price Slips

On-chain data from Lookonchain revealed that a major PEPE whale wallet (0x3c9E) deposited 502.5B PEPE worth $6.47 million to Binance 20 minutes before the price drop intensified. Despite transferring a large amount, the wallet is still holding 497.5 billion PEPE, which is worth $6.41 million.

In just one month, the whale made over $7.47 million, which implies they sold some when prices were close to their highest in some time. Specifically, the deposit comes after PEPE pricemoved away from $0.000015, leading some to doubt if larger owners or whales are behind the short-term decline.

Usually, when profits are realized, more money is exchanged, which quickly affects market prices. The fact that more than half the initial positions were kept unchanged hints that the market could rise once more.

Derivatives Metrics Show Bulls Retain Control

Although Pepe coin price has corrected, Coinglass data still shows that sentiment is bullish. The ratio means that for every short transaction on OKX, there are roughly two more active long positions.

The bias is supported further by a low 0.9486 ratio, making longs more popular than shorts on major exchanges. Binance’s top traders are using 2.3076 times as much long leverage as short leverage.

Although there is less trading activity now, PEPE is still funded positively by the market. It proves that traders are convinced that keeping their money in long positions is still useful.

Hence, a positive funding rate tends to indicate that traders are still buying, helping to fuel the bullish trend. It also suggests traders expect Pepe coin price to rebound and test higher resistance levels, including the much-watched $0.000025 zone.

Support Holds as Regression Trend Remains Active

According to PEPE ON FIRE, PEPE price has respected a key support at $0.000013, tied to a regression trend line dating back to early April. With the most recent drop, Pepe coin price ended up close to that support zone, shaking earlier buyers’ belief.

Yet, PEPE price shortly went up after hitting $0.00001267, suggesting that bulls are trying to support the zone. A current horizontal base in the market, followed by consolidation, mimics what has happened before.

Notably, an uptick in trading volume could cause the trend to reverse after consolidation. PEPEhas often surged higher when forming similar patterns while the market was quiet.

If prices rise and bulls take the $0.000013 support again, the next target level will be $0.000015. Moving past this midpoint, an upward breakout could take the meme coin price to test resistance at the $0.000025 level.

PEPE Price Action and Market Trend

According to CoinMarketCap data, the market cap of Pepe Coin dropped by 12.27% in the last 48 hours. Fully diluted valuation (FDV) has also dipped to $5.38 billion. The latest trading volume stands at $1.58 billion, so the market is still quite active, despite the drop.

With the token now at number 25, having 440,800 holders indicates that the community is still very interested. The constant supply of 420.68 trillion PEPE means there are no significant changes in the market this week.

However, PEPE coin price continues to trend upward on the high-level chart shared by the analyst, despite some near-term weakness. If the price moves beyond $0.000015, it might signal a new rise in the bullish trend.

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.