Pepe Coin (PEPE) has recently experienced a significant downturn, with its price dropping to approximately $0.000012, resulting in a 17% decrease over the past 24 hours and a 28% decline in the last week. This sharp decline has pushed PEPE to its lowest level since November 13, with the coin now trading 54% below its peak in December.
The primary reason behind this price crash seems to be the substantial selloff by large investors, also known as “whales.” These investors have transferred more than 1.1 trillion PEPE tokens to exchanges in a short period, causing an oversupply in the market. This movement has not only increased the supply of PEPE on exchanges by 1.31% but also indicates a bearish outlook among major holders, adding to market instability.
Technical analysis of PEPE’s price suggests a potential for further decline. The convergence of the 200-day and 50-day weighted moving averages is indicating a possible death cross formation, reinforcing the bearish sentiment. The coin is currently trading within a range established in April 2024, with the immediate support level at around $0.00000782 and further support at $0.0000060, last seen in August. Both the Moving Average Convergence/Divergence (MACD) and the Relative Strength Index (RSI) are showing continued declines, indicating ongoing selling pressure that could drive the price closer to these support levels.
Following the recent dip, smart money investors have significantly reduced their exposure to PEPE, with the count of smart money holders decreasing from 91 to 69 and their holdings dropping from nearly 12 trillion to 9.5 trillion PEPE tokens. This divestment by informed and large-scale investors suggests a lack of confidence in PEPE’s short-term recovery.
Considering 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 below $0.0000060 is possible, representing a potential 56% drop from its current level.
Although the current outlook appears bleak, there is always the possibility of a rebound in the volatile crypto market. Factors such as a surge in Bitcoin (BTC) due to favorable economic policies or renewed interest in meme coins could potentially boost PEPE’s price. However, these scenarios seem more likely to happen in the future rather than offering immediate solutions.
In conclusion, Pepe Coin faces a challenging road ahead, with the potential for further price declines in the near term. Investors should exercise caution and closely monitor market developments to make informed decisions regarding their PEPE holdings.
