In the ever-evolving landscape of cryptocurrency, Pepe (PEPE), a renowned meme coin, is attracting considerable attention. Currently standing as the third-largest meme crypto, PEPE is facing a potential significant price drop. This trajectory has been influenced by a bearish price action trend, particularly after experiencing a notable price crash on January 7, 2024. As the market anticipates further declines, investors are keenly observing the unfolding scenario.
Smart Whale Dumps 427 Billion PEPE Meme Coin
In the midst of this downturn, a noteworthy transaction was flagged by Lookonchain, a blockchain-based transaction tracker. According to their post on X (formerly known as Twitter), a savvy investor, or ‘smart whale,’ offloaded a staggering 427 billion PEPE meme coins. This transaction, valued at $8.5 million, was directed to the Kraken cryptocurrency exchange. Despite this massive sell-off, the whale continues to hold a substantial amount of PEPE, totaling 1 trillion coins, and has secured a profit of $2 million.
This isn’t the first instance of such actions by the whale. In late December 2023, a similar large-scale sell-off was executed, yielding profits exceeding $2 million. The recent dumping activity is anticipated to exert additional selling pressure on the market, potentially driving further price decreases due to the prevailing bearish trends.
PEPE Technical Analysis and Upcoming Level
Technical analysis from CoinPedia indicates that PEPE has manifested a bearish head and shoulders pattern on its daily chart, suggesting an impending major breakdown. Although the price has momentarily found support at the pattern’s neckline, this critical support level appears to be weakening. If PEPE breaks below this pattern and closes a daily candle under the $0.0000166 mark, it may experience a further decline of approximately 20%, potentially reaching the $0.000013 level.
On a somewhat optimistic note, there is a glimmer of hope as PEPE’s Relative Strength Index (RSI) approaches the oversold territory, hinting at possible upside momentum. Nevertheless, given the overarching bearish market sentiment, a positive shift seems unlikely in the immediate future.
Decline in Open Interest and Price Momentum
The recent price decline and bearish actions have sparked concerns among investors, leading to a noticeable reduction in open positions. Coinglass, an on-chain analytics firm, reported a 15% drop in PEPE’s open interest at the time of writing. Currently, PEPE is trading at approximately $0.0000178, having experienced a decline of over 5.5% in the past 24 hours. Concurrently, its trading volume has surged by 10%, reflecting increased investor and trader activity compared to the previous day.
As the market dynamics continue to evolve, stakeholders remain cautiously optimistic, closely monitoring these developments to make informed decisions. Whether PEPE can overcome these bearish trends and rebound remains a subject of keen interest in the cryptocurrency community.
