Pepe coin price faces significant challenges as it hovers on the brink of losing a crucial support level. PEPE shows signs of vulnerability as a key technical indicator drops to its lowest point in a week. This decline raises concerns about its ability to maintain its current price levels, potentially signaling a further downturn if the support fails to hold. 

This comes as Bitcoin price lost its crucial $60,000 support. Concurrently, the PEPE price dropped 10.4% in the last 24 hours, while the entire crypto market lost 6.7% of its value in the same duration. Pepe coin profitability is down, but significant whale activity on the last day suggests that whales might be bagging more tokens at a discount. Where is the price of PEPE headed next?

Why is Pepe Coin Price Down?

The price of Pepe Coin (PEPE) took a hit early Wednesday morning, mirroring a broader market decline triggered by Bitcoin dropping below its critical $60,000 support level. Between August 26 and 27, BTC price saw a 3.4% decrease after losing the $63,500 support that had held steady for two days. This downturn can result from a worsening macroeconomic outlook and a dip in activity on the Bitcoin network, subsequently impacting altcoins like PEPE.

Despite this, large investors continue to show confidence in the market’s long-term potential. Notably, BlackRock purchased an additional 3,500 BTC today, taking advantage of the dip. This accumulation suggests that institutional players remain bullish, even as the market experiences short-term volatility.

Blackrock Buys 3516 #Bitcoin

Wow. Huge day pic.twitter.com/UEJ7meg9dq

— Thomas | heyapollo.com (@thomas_fahrer) August 27, 2024

As Pepe coin price approaches a crucial support level, on-chain metrics provide a glimmer of hope, indicating that the asset might still have room for recovery.

PEPE Daily Profit Ratio Hits a Weekly Low

According to data from Santiment, the drop in the price of PEPE may have resulted in a reduced daily profit ratio for the asset as it dropped to 0.34, its lowest since August 23.

For every Pepe Coin transaction closed in a loss, only 0.34 transactions were closed in profit, indicating that most PEPE transactions in the last eight hours resulted in losses.

This is supported by the Coinglass Crypto Derivatives Visual Screener, which shows that traders are opening more short positions on Pepe Coin.

MVRV Signals Pepe Coin Price is Underbought

Despite the drop in profitability, there was a sharp spike in trading activity on August 28, which came right after the sharp decline in the price of PEPE. The spike is the largest since August 24. During this recent spike, 2844 active addresses transacted over 1.07 trillion PEPE. In the same duration, there were 16 whale transactions of $100,000 or more and one transaction of $1 million or more.

Immediately after the spike around midnight UTC, the Pepe coin price began slowly rising. This suggests both whales and retail traders may have taken advantage of the dip to bag more tokens.

Additionally, the 30-day and 365-day Market Value to Realized Value (MVRV) ratio fell into the oversold zone, signaling Pepe Coin was becoming undervalued and due for a rebound soon.

The next major support level for the PEPE price is around $0.00000700. If it fails to hold above that, the meme coin may drop lower to $0.00000600. Pepe Coin price trends inside a range after sporting a fake out on August 24.

If the Pepe coin price bounces from the $0.00000700 level, it may retest the upper boundary of the range around $0.00000900, which, if broken, could result in a 43% surge in price to $0.00001280.

The post Pepe Coin Price Risks Losing Major Support As Key Indicator Drops to Weekly Low appeared first on CoinGape.

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Filed under: News - @ August 28, 2024 7:25 am