- PEPE was down 15% from its recent high
- Will short-sellers extend gains before the U.S election’s outcome?
Short-sellers have had a wild run over the weekend as weakening Bitcoin [BTC] offered bears a chance to mint gains. PEPE wasn’t an exception, as short-sellers who entered the market at $0.000010 had already bagged 15% gains, at press time.
Will the shorting yield more gains before the U.S election’s outcome is known?
PEPE teetering on October support
Source: PEPEUSDT, TradingView
At the time of writing, PEPE’s 15% dump had pushed it to its October support. A crack below the support could embolden bears to push PEPE even lower for more gains.
Should October’s support break, late sellers and early bears could extend PEPE to $0.0000080 or the lower support zone at $0.0000070 (cyan). That would bring total short-seller gains to about 30% if the pullback hits the latter target.
Since the market could set the next direction and even reverse itself after the U.S election’s outcome, it would be advisable to take partial profits early enough.
That being said, the below-average RSI reading reinforced bears’ leverage, while the lukewarm OBV supported the bearish thesis.
However, a sharp BTC reversal could invalidate the short position. In such a case, the 50-day EMA (exponential moving average) and the trendline resistance (white) could be key bullish targets in a recovery scenario.
PEPE active addresses dropped
Source: Santiment
There has also been a sharp drop in active addresses since late October, indicating that PEPE saw muted market interest and traction. This supported the bearish bet, especially before the U.S election winner is announced.
Finally, the PEPE long/short ratio revealed that about 58% of positions were net short on the frog-themed memecoin. This underscored a bearish sentiment and another reason to short the memecoin.
Read PEPE [PEPE] Price Prediction 2024-2025
Source: Coinglass
In conclusion, the ongoing market bloodbath is great for short-sellers looking to maximize gains, PEPE included. However, this could only happen before the market stabilizes after the U.S election’s outcome is known.
For investors and those looking to hold PEPE, grabbing it at discounted values during this panic period could pay off in the medium term. Especially if the market recovers strongly after the elections.
Credit: Source link
