As an analyst with over two decades of experience in the financial markets, I must say that the current state of Pepe Coin (PEPE) is causing me some concern. The drop in price and the low daily profit ratio are red flags that should not be ignored. However, as a student of history, I am reminded of the old adage: “Bear markets are when you make your money.”
As a researcher studying the PEPE coin market, I find myself observing a critical situation: The PEPE coin price is teetering precariously close to forfeiting a vital support level. The latest technical indicators show a noticeable drop, reaching its lowest point in over a week. This decline casts doubts on its resilience to sustain the current price range. If this support fails to withstand the pressure, it could foreshadow a more pronounced downturn in the coin’s value.
In the past 24 hours, Bitcoin‘s price slipped below the crucial $60,000 mark, while PEPE followed suit by decreasing 10.4%. Simultaneously, the entire crypto market experienced a 6.7% dip in value. The drop in profitability for PEPE is evident, but heightened whale activity on the last day implies that these large investors could be accumulating more tokens at a reduced price. So, what’s next for the PEPE coin price?
Why is Pepe Coin Price Down?
Early Wednesday morning, Pepe Coin (PEPE) experienced a price drop, following a wider market decline initiated by Bitcoin falling below its crucial $60,000 support level. Over the span of August 26 to 27, Bitcoin’s value decreased by 3.4%, as it lost the $63,500 support that had remained stable for two days. This market downturn could be attributed to a deteriorating economic outlook and reduced activity on the Bitcoin network, which in turn affected altcoins such as PEPE.
As a researcher, I find it noteworthy that despite current fluctuations, major investors persist in their faith in the market’s long-term prospects. Today, BlackRock, one such investor, added another 3,500 BTC to its portfolio, seizing the opportunity presented by the dip. This strategic move underscores the fact that institutional players are optimistic about the market’s future, continuing to buy even amid short-term market turbulence.
Blackrock Buys 3516 #Bitcoin
Wow. Huge day
— Thomas | heyapollo.com (@thomas_fahrer) August 27, 2024
As the cost of Pepe coin nears a significant floor, data from blockchain analysis offers a faint spark of optimism, suggesting that there may be potential for further rebound in its value.
PEPE Daily Profit Ratio Hits a Weekly Low
Based on information from Santiment, the decrease in the cost of PEPE could lead to a lower daily profit margin for the asset, with the ratio dropping to 0.34 – a level not seen since August 23.
Approximately three out of ten Pepe Coin transactions finalized over the past eight hours yielded a profit, while the majority ended up as losses.
According to the Coinglass Crypto Derivatives Visual Screener, it appears that traders have been increasing their short positions for Pepe Coin.
MVRV Signals Pepe Coin Price is Underbought
Although profitability decreased on August 28, there was a significant increase in trading activity that followed closely after PEPE‘s price drop on the same day. This surge was the most substantial since August 24. A total of 2,844 active addresses participated in transactions worth over 1 trillion PEPE during this spike. Moreover, within the same timeframe, there were 16 large transactions involving $100,000 or more and a single transaction exceeding $1 million.
Right after the surge at midnight UTC, the value of Pepe coins started incrementally increasing. This indicates that both large investors (whales) and individual buyers (retail traders) might have seized the opportunity presented by the decline to amass additional tokens.
Furthermore, the MVRV ratio for Pepe Coin dropped into an oversold region over both 30-day and 1-year periods, which suggests that it may be underpriced and poised for a potential price increase in the near future.
In simpler terms, if the PEPE coin’s price doesn’t stay above roughly $0.00000700, it could potentially decrease to about $0.00000600. After exhibiting a false breakout on August 24, the Pepe Coin’s price movements have been confined within a specific range.
If Pepe coin’s price rebounds from approximately $0.000007, it might challenge the upper limit of its current range at roughly $0.000009, exceeding which could potentially trigger a 43% upward movement taking the price to around $0.0000128.
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2024-08-28 10:34