Pepe Coin (PEPE) 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

Bitcoin's failure to maintain the crucial $60,000 support level triggered a broader market decline, impacting altcoins such as Pepe Coin (PEPE). As of early Wednesday morning, BTC price experienced a 3.4% loss following its failure to sustain the $63,500 support level, which had held strong for two days. This downturn may be attributed to a worsening macroeconomic outlook and a dip in activity on the Bitcoin network, subsequently impacting altcoins.

However, large investors are still showing confidence in the market's long-term potential. Notably, BlackRock is purchasing an additional 3,500 BTC today, capitalizing on the dip. This accumulation indicates that institutional players remain bullish, despite the market experiencing 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, suggesting 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, the lowest since August 23.

This is further 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.

The above is the detailed content of Pepe Coin (PEPE) Price Faces Significant Challenges as it Hovers on the Brink of Losing a Crucial Support Level. For more information, please follow other related articles on the PHP Chinese website!