PEPE Price Faces 18% Risk Unless Support Is Maintained

Summary:
PEPE's price is at risk of a potential decline of 18% if buyers do not uphold a critical support level. Despite an increase in whale accumulation, retail selling is causing short-term challenges for the token's price.

Key Takeaways

PEPE's price could drop by 18% unless critical support is maintained.
Over the last three months, PEPE has declined more than 55%, and 75% over the past year.
Whale accumulation is on the rise, but retail traders are selling, adding pressure.
Technical signals reveal a mixed outlook, with the possibility of a significant drop if support fails.
Buyers must push through resistance levels to see a meaningful recovery.

PEPE price faces 18% risk unless support holds - 1

Current Market Conditions

According to market analysis, the price of PEPE is exposed to an 18% decline unless buyers can uphold a significant support level. The cryptocurrency has seen a notable drop of over 55% in just three months and a staggering 75% over the past year. Although there was a slight price increase around November 21, market analysts indicate that selling pressure persistently overshadows any relief.

Potential Reversal in PEPE's Price

The current market analysis reveals a slight increase in whale accumulation, but retail selling continues to apply downward pressure on PEPE’s price.

🟡 Heatmap Analysis | $PEPE

The BB Liquidation HeatMap (Model 2) indicates a clear leverage map for PEPE at this moment.

Recent technical indicators suggest a mixed future for PEPE. The Relative Strength Index (RSI) shows signs of a hidden bearish divergence, where the RSI is making higher highs while the price is creating lower lows. This suggests the recent price increase may lack the strength necessary for a lasting trend. If these patterns hold steady, the token could drop towards nearby support levels, representing an approximate 18% decline from current values. Analysts warn that if the price descends below this support, further losses may occur due to a lack of robust support levels further down.

In order for PEPE to change its course, it must break above the nearby resistance levels to demonstrate a significant recovery. Until those thresholds are exceeded, sellers will maintain control over the trend, according to expert analysis.

Wallet data indicates that influential holders and major whales have increased their positions by small-to-moderate increments in the past month. However, higher coin transfers to exchanges suggest that retail traders are looking to sell, reflecting concerns from smaller investors.

Interestingly, the "smart money" seems to have reduced their exposure at a slow rate, indicating that major buyers are not anticipating a quick price bounce.

The bull-bear power indicator points to a decrease in selling pressure, with charts indicating that seller dominance has been gradually shrinking since early October. Nevertheless, buying pressure has not yet established itself as a dominating force in the market.

Some analysts speculate that a potential double-bottom pattern could emerge around mid-December, potentially facilitating a price reversal if support levels hold firm.

The market outlook for PEPE relies heavily on buyers defending the current price levels, with significant improvement contingent on breaking through nearby resistance. While the rise in whale accumulation may offer long-term support, it has yet to change the short-term bearish sentiment, according to analyst conclusions.