- The price action showed there is a possibility of a range formation, with $0.000008 as its lows.
- On-chain data and the liquidation levels showed a deeper price drop was likely.
Pepe [PEPE] was unable to hold on to the fair value gap as a support zone. It crashed straight through it, reaching the local lows at $0.000008 once more. This was the level that saw the meme coin bounce after the early July losses.
There is hope that the same can occur again. However, a closer look at the clues from the liquidation heatmap and holdings distribution showed the bears will remain dominant for some more time.
The $0.000008 level is still a firm support
Source: PEPE/USDT on TradingView
The fair value gap (white) that PEPE left during its rally to $0.000013 did little to halt the bearish pressure. The $0.00008 and the $0.0000678 levels are the next supports, the latter being the 78.6% retracement level based on the rally in May.
The MACD fell below neutral zero but the CMF was only at -0.02. Overall, the daily timeframe price chart outlined a bearish bias, but also a potential range formation between $0.000008 and $0.000013.
Source: IntoTheBlock
The in/out of the money around price also highlighted the region around $0.000008 as a support.
Reasons why a deeper price drop is possible
Source: IntoTheBlock
A look at the 30-day change by the balance of holdings amongst various PEPE holding wallets showed that whales have been distributing their assets. Only the smaller holders up to 10 million PEPE have added to their bags in the past month.
The rest have been unloading the token, with the 10 trillion and above cohort alone accumulating. This highlighted the selling pressure in the past 30 days, and warned of more losses.
Source: Hyblock
Realistic or not, here’s PEPE’s market cap in BTC’s terms
The 3-month liquidation heatmap also gave a similar warning. The liquidity pool at $0.000009-$0.00000945 was not enough to reverse the downward trend.
The next region of interest is the $0.00000677-$0.0000074. This lined up well with the Fibonacci level at $0.00000678, reinforcing bearish expectations.
