- Whales have sold off over 1.1 trillion PEPE coins.
- Technical indicators signal a potential for further decline.
- The immediate support is at $0.00000782, with the risk of a drop to $0.0000060.
Pepe Coin (PEPE) has been on a downward spiral, with its price plummeting to around $0.000012, marking a 17% drop in the last 24 hours and a 28% decline over the past week.
This sharp downturn has brought PEPE to its lowest level since November 13, with the coin now trading 54% below its peak in December.
Whales have sold off over 1.1T PEPE coins
The main catalyst behind this price crash appears to be the significant sell-off by large investors, often referred to as “whales.”
These investors have moved over 1.1 trillion PEPE tokens to exchanges in a very short period, creating an oversupply in the market.
Many whales have recently sold off their entire $PEPE holdings.
0xfBfC…07Be deposited 430B $PEPE($6.39M) to #Binance 9 hours ago.
marketparticipant.eth deposited 325.5B $PEPE($4.9M) to #Binance 24 hours ago.
0xb1a2…6731 sold 200.88B $PEPE for 2.85M $USDC in the past 48… pic.twitter.com/oJlJpEUbtv
— Lookonchain (@lookonchain) January 27, 2025
These movements have not only increased the supply of PEPE on exchanges by 1.31% (from 237.18 trillion to 240.28 trillion) but also suggest a bearish outlook among major holders, further fueling market instability.
Technical analysis points to a more bearish sentiment
PEPE price’s technical analysis is fraught with signals of potential further decline:
- Death Cross Formation: The convergence of the 200-day and 50-day weighted moving averages is hinting at a death cross, which if confirmed, would solidify the bearish sentiment.
- Support and Resistance Levels: PEPE is currently trading within a range established in April 2024, with boundaries between $0.00000633 and $0.00001461. The immediate support level to watch is around $0.00000782, with further support at $0.0000060, a level last seen in August.
- MACD and RSI: Both the MACD and the Relative Strength Index (RSI) are showing continued declines, suggesting that the selling pressure might persist, pushing the price closer to these support levels.
Will the PEPE price rebound soon?
Following the dip, the market sentiment around PEPE has turned notably negative, with smart money investors drastically reducing their exposure. The count of smart money holders has decreased from 91 in December to 69, with their holdings dropping from nearly 12 trillion to 9.5 trillion PEPE tokens.
This divestment by informed and large-scale investors signals a lack of confidence in PEPE’s short-term recovery.
Given the current whale activity, technical patterns, and declining investor confidence, Pepe Coin could see further price drops. If the support at $0.00000782 fails to hold, a decline towards or even below $0.0000060 is plausible, representing a potential 56% drop from its current level.
However, while the current scenario looks bleak, there’s always the possibility of a rebound in the volatile crypto market. Factors like a surge in Bitcoin (BTC) due to favourable economic policies or renewed interest in meme coins could provide a lifeline for PEPE.
However, at this juncture, these scenarios appear to be on the horizon rather than immediate solutions.
