#ProjectCrypto. After several weeks of gains, the memecoin PEPE experienced a strong correction amid still high trading volume, albeit declining. This drop in volume may indicate that bearish pressure is starting to decrease.
The recent correction of PEPE coincided with a significant sale by Arthur Hayes, co-founder of BitMEX and a well-known Bitcoin advocate, who unloaded a large amount of PEPE tokens:
"Arthur Hayes (@CryptoHayes) sold 2,373 ETH ($8.32 million), 7.76 million ENA ($4.62 million), and 38.86 billion PEPE ($414.7 thousand) in the last 6 hours."
What is driving the decline of PEPE?
The drop in PEPE and the cryptocurrency market as a whole occurs amidst an unfavorable macroeconomic environment. Inflation in the United States has not shown clear signs of slowing down, and the Federal Reserve has questioned the possibility of cutting interest rates in September.
In addition to this, there is a global climate of uncertainty due to the ongoing protectionist policies of U.S. President Donald Trump, including new tariffs on important trading partners.
However, besides the macroeconomic factors, there is a market hypothesis that makes sense: the recent drop in PEPE could simply be a technical correction. While Bitcoin fell to $113,000, many altcoins and memecoins registered double-digit declines last week. This suggests that traders may be taking profits after strong previous gains.
If that is the case, we will have to wait for this liquidation to end and for BTC to regain momentum to see a recovery in the memecoin market.
PEPE Technical Analysis: Key Levels to Monitor
From a graphical perspective, PEPE is crossing a critical zone. After a series of massive sales and increasing bearish momentum, the price lost the main support at $0.00001180. Buying pressure has weakened, as has whale activity, leaving the token in a vulnerable position.
Relevant resistances:
$0.00001065: Immediate resistance, although not particularly strong. Overcoming it would be the first step towards recovery.
$0.00001180: Former main support now acts as main resistance after the breakout.
$0.00001290: a decisive level whose breakout would indicate a resumption of the upward trend.
Supports to monitor:
$0.00000970: Solid technical support; losing this level would prolong the downward trend.
$0.00000900: An important psychological level. If broken, the price could approach the June low of $0.00000880.
The current RSI is at 42, reflecting that bears still control the market and no significant recovery is expected in the short term.
PEPE urgently needs to reclaim $0.00001180
Analyst Ali Martinez noted on August 1 that PEPE needed to reclaim the $0.00001180 level to avoid a deeper correction:
"PEPE needs to reclaim $0.0000118 as support to avoid a possible drop to $0.0000097!"
At that moment, the price had not yet fallen below $0.00001000. However, today the analyst's alert begins to materialize, as the token has failed to halt its decline.
However, there is a strong concentration of buyers around the $0.00000990 level, suggesting that at least in the short term, a sharper decline could be avoided.
