- PEPE is down 15% from recent highs.
- Can short sellers increase their profits before the US election results come out?
Short selling surged after weakening over the weekend. Bitcoin (BTC)) provided the bears with an opportunity to profit. pepe Short sellers who entered the market at $0.000010 were no exception, as they had already made a 15% profit at press time.
Will short selling bring more profits before the US election results are known?
PEPE is considering support for October.
Source: PEPEUSDT, TradingView
At the time of writing, PEPE’s 15% dump pushed it back to October support. A crack below the support line could allow bears to push PEPE lower further to take further profits.
If October support is broken, late sellers and early bearers could extend PEPE to $0.0000080 or lower support at $0.0000070 (turquoise). If the bears reach the latter target, the total short profit would be about 30%.
It may be advisable to take partial profits early enough as the market may decide its next direction or even reverse course after the US election results.
That is, below-average RSI readings strengthened the bears’ leverage, while tepid OBV supported the bears’ argument.
However, if BTC reverses sharply, your short position may become invalid. In this case, the 50-day exponential moving average (EMA) and trendline resistance (white) could be the main bullish targets in a recovery scenario.
PEPE active address has been deleted.
Source: Santiment
Additionally, there has been a sharp decline in active addresses since late October, indicating weak market interest and traction for PEPE. This supported bearish bets, especially before the US election winner was announced.
Lastly, the PEPE long/short ratio shows that approximately 58% of positions are net long in the frog-themed memecoin. This highlighted the bearish sentiment and another reason to sell memecoin.
Read PEPE (PEPE) Price Forecast for 2024-2025
Source: Coinglass
In conclusion, the ongoing market turmoil is great for short sellers looking to maximize profits, including PEPE. However, this can only happen before markets stabilize after the US election results are known.
For investors and those looking to hold PEPE, holding PEPE at a discounted price during this panic period could provide benefits in the medium term. This is especially true if the market recovers strongly after the election.