PEPE Continued to face pressure on Thursday, with prices hovering around $0.00000348. Previously, attempts to break above the 200-day moving average were unsuccessful. Divergences in positions reduction by large traders on the chain and derivatives signals led to a weaker short-term trend.
Whales have been continuously reducing their positions since August 25th.
The holding distribution data of Santiment shows that after a round of gains in mid-August, some large-scale coin holders began to realize their profits. Wallets holding between 10 million and 100 million PEPE tokens have sold approximately 80 billion tokens since August 25th.
In contrast, small and medium-sized wallets holding between 100,000 and 10 million PEPE increased their holdings by approximately 5.06 billion during the same period. The significant difference in scale between the two indicates that the capacity of small and medium investors to absorb large traders' sell-offs is not yet sufficient at present.
Derivative data shows divergence
The derivatives market has not shown a consistent direction. On Thursday, the long-to-short ratio of PEPE rose to 1.05, approaching a high level not seen in over a month, indicating that there are slightly more bullish positions than bearish positions.
However, another more sensitive sentiment indicator weakened. PEPE The funds rate weighted by open contracts turned negative on Wednesday and dropped to -0.0067% on Thursday. This usually indicates an increase in bearish momentum, which is inconsistent with the optimism reflected in the long-short ratio.
The key resistance level remains at the 200-day moving average.
In terms of price performance, PEPE touched around $0.00000364 on the previous trading day before falling back and failed to break through the 200-day moving average. This level remains an important short-term resistance.
The momentum indicator also shows that buying interest has slowed down. The Relative Strength Index (RSI) is falling back towards 50, indicating that the previous upward momentum has weakened. After forming a death cross last week, MACD, the trend has not yet reversed to this day.
In terms of support below, the 50-day and 100-day moving averages have formed initial support around $0.00000320, with a more important level at around $0.00000313. If this level is broken through, prices could further decline to around $0.00000230.
To alleviate the current weakness, PEPE needs to re-establish itself above the 200-day moving average around $0.00000364. If the breakthrough is successful, the next resistance level on the daily chart is roughly at $0.00000442.
