Pepe (PEPE), the third-largest crypto meme coin, is under mounting bearish pressure, raising fears of a significant price drop. This comes on the heels of a major crash on January 7, 2024, which has set the stage for further declines.
Whale Dumps $8.5 Million Worth of PEPE
Adding to the bearish sentiment, a notable whale recently dumped 427 billion PEPE tokens, valued at $8.5 million, onto the Kraken exchange, as revealed by blockchain tracker Lookonchain on X (formerly Twitter). Despite this substantial sell-off, the whale retains a staggering 1 trillion PEPE, with a realized profit of $2 million.
A whale deposited 427B $PEPE($8.5M) to #Kraken in the past 30 hours, and currently holds 1T $PEPE($18.4M), with a profit of $2M.
— Lookonchain (@lookonchain) January 8, 2025
This whale had made $11.7M on $PEPE before.https://t.co/Mlth51bIfi pic.twitter.com/D7nOeccU8Q
Interestingly, this is not the whale’s first large-scale sell-off. In December 2023, the same entity offloaded a significant amount of PEPE, profiting over $2 million. However, the timing and scale of this latest dump could intensify selling pressure, driving the meme coin’s value lower.
Technical Analysis: PEPE Teeters on the Edge
PEPE’s price chart paints a grim picture. According to CoinPedia’s analysis, the coin has formed a bearish “head and shoulders” pattern, suggesting a potential breakdown. While the price currently clings to support near the neckline, this level appears increasingly fragile.
Should PEPE break below the critical $0.0000166 mark and sustain a daily close beneath it, analysts forecast a further 20% drop, bringing the price down to $0.000013.
On a brighter note, PEPE’s Relative Strength Index (RSI) hovers near the oversold zone, hinting at a possible recovery. However, given the prevailing market sentiment, an immediate rebound seems unlikely.
Declining Open Interest Signals Investor Caution
Investor sentiment around PEPE continues to weaken. On-chain data from Coinglass shows a 15% drop in open interest, reflecting reduced confidence in the coin’s short-term prospects.
As of now, coin trades at $0.0000178, marking a 5.5% decline over the past 24 hours. Trading volume, however, has surged by 10%, indicating heightened activity as traders brace for potential market turbulence.
While the current outlook remains bearish, investors will closely watch key support levels and market dynamics for signs of stabilization or further decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
