Bearish sentiment continues to prevail as PEPE's price hovers around a crucial support level, facing mounting selling pressure due to an increase in supply on exchanges. The weakening of buyers' position suggests a potential impact on PEPE's long-term price action.

Over the past 48 hours, the cryptocurrency market has experienced significant fluctuations, with Bitcoin (BTC) surging from $28.9k to $30k before retracing to $29k at the time of writing. Despite BTC's movements, PEPE seems relatively unaffected, making the price action at its critical support level all the more crucial for the memecoin's future price movement.

Bears have gained control of PEPE's price action after encountering a major hurdle at the $0.00000186 price zone. This led to a 20% decline between July 14 and July 24, bringing PEPE's price down to the $0.00000151 support level. However, the bullish defense at this level proved short-lived as another 20% drop pushed it to the critical $0.00000121 level.

The $0.00000121 price zone holds significant importance for the bulls, as the last bullish rally required flipping this level for sustained gains. If bulls fail to hold this level, PEPE could potentially reach a new yearly low, trading between $0.00000080 to $0.000001.

Despite the evident bearish dominance on the price chart, whale movements indicate an accumulation of PEPE at lower prices. A recent report revealed a substantial outflow of 677 billion PEPE tokens from a major exchange. This accumulation trend could signal a potential rally from the current support level.

Additionally, on-chain metrics from Santiment indicate a dip in PEPE's 90-day mean coin age, suggesting increased movement between addresses. This could be an indication that traders are preparing for another sell-off.

Furthermore, the supply of PEPE on exchanges has risen, indicating where the tokens being moved are ultimately ending up. The increased supply on exchanges could exert additional selling pressure on the memecoin.

Should the price slump further from its current level, it may reach the $0.000001 mark, which was the starting point of the previous rally in mid-June. Buyers will be hoping for a similar positive outcome if this support level is retested.

In conclusion, PEPE's price outlook remains uncertain as bears continue to exert dominance, and selling pressure increases due to a rise in supply on exchanges. The pivotal $0.00000121 support level holds the key to potential price movements, and bullish traders may be encouraged by signs of accumulation at lower prices. However, investors should exercise caution and conduct their own research before making any investment decisions in the cryptocurrency market.