The frog-themed Pepe (PEPE) meme coin, which stands as the third-largest meme coin in the cryptocurrency market, is currently facing a potential price crash. This follows a period of significant profit booking by whales over recent days. According to insights from crypto intelligence firm Santiment, PEPE whales and traders have realized substantial profits, amounting to over $30 million in the past six days.
PEPE’s Bearish On-chain Metrics
In the world of cryptocurrency and other financial markets, profit booking is often viewed as a bearish indicator, suggesting a possible price decline for the asset in question. This, combined with waning interest from traders and investors, could signal an impending price drop for PEPE. Data highlights a significant drop in whale transaction values — those transactions valued at $100,000 or more have decreased by 70%, falling from 129 transactions to just 36 within the last six days.
This shift in whale activity suggests a growing disinterest in the frog-themed meme coin among large investors, which could potentially lead to a further decline in PEPE’s price in the near future.
Current Price Momentum
As of the latest data, PEPE is trading at approximately $0.0000071, having experienced a price decline of over 6% in the past 24 hours. Interestingly, during this same period, the coin’s trading volume surged by 65%, indicating a higher level of participation from traders. This increased trading volume amidst a price drop could be indicative of heightened market activity and volatility.
PEPE Technical Analysis and Upcoming Levels
Expert technical analysis reveals that PEPE is currently exhibiting bearish tendencies, as it is trading below the 200 Exponential Moving Average (EMA) on the daily time frame. The 200 EMA is a widely-used technical indicator that helps traders and investors gauge whether an asset is in an uptrend or a downtrend.
Additionally, PEPE has formed a bearish head and shoulders price action pattern on the daily chart, further indicating a potential price decline in the coming days. If PEPE closes a daily candle below the critical support level of $0.00000644, there is a strong likelihood that the price could drop by another 20%, reaching the $0.0000051 level.
However, this bearish outlook is contingent upon PEPE closing below the $0.00000644 level. Should the coin fail to close below this crucial support, the bearish scenario may not materialize.
As the market continues to evolve, it will be crucial for traders and investors to closely monitor these key levels and on-chain metrics to make informed decisions regarding their positions in PEPE.
