$PEPE Price Compression: PEPE is consolidating in a descending wedge above the critical support zone at $0.0000037, signaling a potential volatile movement.
Divergence of experienced operators: Large traders are selling during a rally driven by small retail investors, creating the risk of a prolonged squeeze as the Long/Short ratio reaches an extreme level of 34:1.
Increase in leverage: Open Interest has increased by 7.6% to $222M, with new leveraged positions amplifying the risk of a breakout or sudden collapse.
Mixed sentiment: Positive sentiment on PEPE on social media contrasts with the broader market's 'fear' state, creating an uncertain trading environment.
Technicals show consolidation
PEPE is trading around $0.00000394, below the 99-hour EMA resistance at $0.00000397, finding support near the lower Bollinger Band at $0.00000385.
The RSI is neutral at 49.7, not indicating a clear directional bias. However, the MACD histogram is turning positive, suggesting that bearish momentum is weakening.
Recent hourly data shows a net inflow of about $587K, with large orders indicating some accumulation despite widespread fear in the market.
Large traders sell during the rally
There is a strong contrast: retail leverage is extremely bullish (Long/Short ratio at 34:1), but large traders are net sellers, signaling that they are distributing their positions.
In the last hour, the selling volume of large traders ($86.6K) was nearly triple the buying volume ($30.1K), signaling a bearish attitude from sophisticated traders.
Crowded long positions create a high risk of a "long squeeze," where a small price drop could trigger chain liquidations.
A descending wedge is forming
News highlights the price compression of PEPE within a descending wedge, a pattern that often precedes a significant breakout.
It is said that buyers in the spot market are absorbing selling pressure, while the 7.6% increase in Open Interest to $222M signals increased speculation. 
PEPE trading activity
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Strategy: Watch for the breakout
Short term: A break below support at $0.0000037 could trigger a drop to $0.0000030. Conversely, a breakout above resistance at $0.0000050 could target $0.0000063.
Medium term: Direction will depend on retail buyers absorbing the sales from large traders. Low dominance in the memecoin sector could act as a bullish catalyst if sentiment changes.
Long term: The value of PEPE is tied to sentiment. The high-leverage environment poses significant risks, so long-term positions require caution.
