PEPE price took a significant hit on August 12, dropping below $0.00008 and marking a 15% decline in three days. While some investors who bought during the recent rebound are taking profits, derivatives market data suggests a potential bear trap. Despite the price drop, PEPE managed to rebound from a steep fall on August 5, fueled by positive news about SOL ETFs and crypto mining in Brazil and Russia respectively. This bullish sentiment might have artificially inflated demand, leading to profit-taking as the initial excitement faded.

Interestingly, traders holding long positions in PEPE have remained steadfast, with leverage positions totaling $5.48 million compared to just $5.13 million in short positions. This indicates strong belief in the token's potential. If PEPE can hold above the $0.00008 support level, a new rally could push the price towards the $0.000010 resistance, potentially signaling a broader market shift. However, breaking below $0.00008 could invalidate this bullish outlook.

While the overall crypto market remains bearish, PEPE's resilience and strong support from traders suggest a potential for a significant price increase in the near future.