After Pepe's price dropped 9%, the market's price predictions have diverged—are we at the price top, or is this a calm before Pepe's next explosive rebound?
Pepe (PEPE) has fallen 9% in the past 7 days, underperforming most other meme coins during the recent pullback—casting doubt on the current price prediction for Pepe.
Is this a deeper weakness and a sign of mid-term bearish outlook, or merely a healthy correction before the next upswing?
Data from CoinDesk Research shows that whales have recently been selling off PEPE, although not all of these sell-offs are voluntary, suggesting liquidations or forced exits rather than a general loss of confidence.
Famous PEPE trader James Wynn made a fortune by buying this meme coin when PEPE was still an unknown token to the rest of the world, but he has recently liquidated his long positions.
The long position worth $207 million has been affected by the latest round of declines in PEPE, leading Wynn to lose approximately $180,000 in a relatively short period.
This trader, known for high-risk strategies, has experienced both massive gains and painful losses. While his methods have previously brought life-changing returns, the situation has reversed—he was forced to sell a $1 billion Bitcoin position in May this year, reportedly losing about $60 million.
PEPE's open contracts have also taken a hit. After peaking at $1 billion on July 22, the figure subsequently fell sharply, indicating that many traders (likely similar to Wynn) suffered heavy losses during the 21.4% drop of PEPE from $0.000014 to $0.000011.
This wave of forced exits raises a critical question: Is the surrender of whales an early warning signal for a deeper adjustment in the future?
With the price movement breaking through key levels, does the current structure support a mid-term bearish price prediction for PEPE?
Pepe Price Prediction: If this key support level is breached, PEPE could fall to $0.00000850.
Pepe's daily chart shows that the price began to retreat after reaching the $0.00001450 mark and has fallen below the 200-day exponential moving average in the past few days.
Now, the 9-day and 21-day exponential moving averages (EMA) have formed a 'death cross', falling below their long-term moving averages. This favors a bearish price prediction for Pepe and may signal the start of a significant downtrend.
The key support level to watch right now is the $0.00001050 area. If PEPE drops below this level, it could potentially rise further to higher areas—possibly around $0.00000850.
However, given that market sentiment and momentum still favor a bullish outlook, there is a risk in shorting PEPE at the moment, as it means going against the trend. Shorting can be considered if a breakout above $0.00001050 is confirmed.