#### 1. Current market situation
- Sharp decline: PEPE is experiencing a -8.82% drop at a price of 0.00001220 USDT, reflecting strong selling pressure in the market.
- Trading activity:
- Daily volume of 899.39 million USD indicates high liquidity, but the volume/market cap ratio (**17.48%**) is lower than its previous peak, which may indicate a decline in short-term interest.
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#### 2. Fundamental indicators
- Market cap: 5.15 billion USD, with minimal market dominance (**0.1547%**), making it susceptible to broader market fluctuations.
- Trading supply: 420.69 trillion PEPE (no maximum), increasing inflation risks as supply rises.
- Historical levels:
- Highest price: 0.00002824 USDT (131% higher than the current price).
- Lowest price: 0.000000000010628 USDT (on 16-4-2023).
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#### 3. Flow and momentum analysis
- Selling pressures: The recent drop of 8.82% is supported by high trading volume, which may indicate a continued decline.
- Support and resistance levels:
- Key support: 0.00001100 USDT (the same area that saw previous bounces).
- Nearby resistance: 0.00001300 USDT (must be broken to start a recovery).
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### Investment recommendations
#### A. For short-term traders:
1. Selling on the rise:
- Entering short positions at 0.00001300 USDT if the price fails to break this resistance.
- Stop loss set at 0.00001350 USDT.
2. Buy at support:
- Entering at 0.00001100 USDT with a target of 0.00001250 USDT if the price bounces from this level.
#### B. For long-term investors:
1. Waiting for lower levels:
- Buy at 0.00001000 USDT or lower, as this may form a zone of attraction for buyers.
2. Risk assessment:
- The lack of a maximum supply increases inflation risks, so it's preferable to reduce the position size.
#### C. Risk management:
- Do not allocate more than 5% of the portfolio to this currency.
- Avoid high leverage due to sharp volatility.
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### Future predictions
#### Positive scenario:
- If it bounces from 0.00001100 USDT with improved volume, it may target 0.00001500 USDT.
- Any positive news about "meme coins" may stimulate demand.
#### Negative scenario:
- Breaking 0.00001100 USDT may lead to a drop towards 0.00000900 USDT.
- Continued large selling flows may increase the pressure.
#### Influencing factors:
- Overall performance of the cryptocurrency market.
- Any updates or new listings on major exchanges.
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### Conclusion
PEPE is under strong selling pressure, but it may see a rebound if it stabilizes at key support levels.
- Traders: Can take advantage of volatility with tight risk management.
- Investors: Prefer to wait for a safer entry at lower levels.
- Prediction: The trend relies on testing 0.00001100 USDT as critical support.
> Warning: PEPE is classified as a "meme coin" with weak fundamentals, so caution is advised and not to rely solely on technical analysis.
