PEPE's recent performance indeed makes it a bit hard to interpret. As a leading meme coin on the Ethereum chain, this wave of market movement has been even more vigorous than many mainstream coins, with steady gains that once led people to mistake it for a true blue-chip. But a closer look at the chart reveals some issues.

The 0.0072 level shows obvious resistance, and the price has been oscillating around 0.007 for some time, with trading volume gradually shrinking. What does this high-level stagnation combined with insufficient volume usually indicate?

Major funds are gradually shifting their chips. Although PEPE's narrative is more solid compared to other meme coins, at this height, the pressure on the whales to cash out is also significant. Once the main players start to sell, coupled with a market correction, it’s quite normal for the price to short-term break below 0.006 or even lower. From a technical perspective, the signals of distribution are already quite clear.

However, it must also be acknowledged that there is still some possibility of fluctuation in the current situation. But from a risk-reward standpoint, shorting at high levels is more appropriate than chasing the highs. If you really decide to take action, adjust your mindset properly and don’t let unrealized losses affect your judgment—this is the most common pitfall when shorting at high levels.