Pepe (PEPE), the third largest popular cryptocurrency coin, is on the verge of a massive price drop after forming a bearish price action. This bearish outlook follows a significant price crash on January 7, 2024, and suggests further decline to come.
Smart Whale throws away 427 billion PEPE Meme coins
Amid this price drop, Lookonchain, a blockchain-based transaction tracker, published an article on X (formerly Twitter) stating that a smart whale had dumped 427 billion PEPE meme coins worth 8.5 million dollars on the market. Kraken Cryptocurrency Exchange.
Despite dumping such a large amount of coins, the whale still holds a substantial 1 trillion PEPE with a profit of $2 million.
This is not the first time that the whale has released PEPE; At the end of December 2023, the whale released a large amount of meme coins and made a profit of more than $2 million. However, this time whale dumping has the potential to create selling pressure and lead to further price declines due to recent price action.
PEPE technical analysis and upcoming level
According to technical analysis from CoinPedia, PEPE has formed a bearish head and shoulders price action pattern on the daily chart and is poised for a major breakdown. Currently, the price has taken support from the neckline of the pattern, but it appears that the support level is weakening.
Based on recent price action, if PEPE breaks the trend and closes a daily candle below the $0.0000166 level, it could fall by 20% to reach the $0.000013 level at future.
On the positive side, PEPE Relative Strength Index (RSI) is near the oversold zone, indicating potential bullish momentum. However, this seems unlikely due to the continued bearish sentiment across the broader market.
Decline in open interest and price momentum
This price decline and bearish price action has sparked concerns among investors, leading to a drop in open positions, as revealed by on-chain analytics firm Coinglass. At press time, PEPE’s open participation had fallen by 15%.
Currently, PEPE is trading near $0.0000178 and has seen a price drop of over 5.5% in the last 24 hours. During the same period, its trading volume increased by 10%, indicating increased participation from investors and traders compared to the previous day.
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