Whale Sell-Off: 366B PEPE Hits the Market – Will Prices Continue to Fall?
In a significant event within the crypto sector, a notable Pepe Coin holder transferred a substantial amount of tokens to the trading platform Binance. According to data from SpotOnChain, this transaction involved 366 million PEPE, valued at approximately $5.31 million. This movement indicates that the whale capitalized on the recent price surge of Pepe Coin, yielding an estimated profit of $4.84 million, which translates to a gain of 985%.
At the time of writing, PEPE is trading at $0.0000145, marking an increase of 1.56% in the last 24 hours. Its trading volume is currently at $1.4 billion, while its market cap stands at $6.1 billion.
Interestingly, the same deposit address was previously utilized by two other savvy traders who successfully leveraged PEPE market movements. Another transaction, also noted by SpotOnChain, saw an additional 660.71 billion PEPE, worth around $9.01 million, deposited to Binance.
Significant withdrawals were also executed from both MEXC and Binance by the trader, realizing profits of $4.57 million, which represent 49.35% of the transaction value. These movements by whale accounts have raised concerns about potential price declines for PEPE, particularly given the high volume of sell orders observed.
Despite these market activities leading to a price dip, sentiment in the broader crypto market remains optimistic. Can PEPE show recovery signs soon? Let’s delve into the technical insights.
Over the past week, PEPE’s market behavior has been predominantly bearish, particularly after reaching its all-time high of $0.00001725 on May 27th. Since then, the price has retracted, touching an ascending trendline that has been active since April 11th. This trendline is crucial as it has previously indicated potential bounce-back points for the price.
The immediate target for PEPE remains at the recent all-time high, with a breakout potential only if the price faces rejection at this ascending trendline support. Conversely, there is a possibility of a further drop if the price breaks below the ascending trendline, potentially filling a Fair Value Gap and moving towards another ascending trendline below the current one.
On the technical front, PEPE indicators show more bearish momentum in its short-term price movements. The Relative Strength Index (RSI) is currently at 59, reflecting bearish momentum as it has decreased from previously overbought conditions in late May. This suggests room for further bearish activity, which could continue the price correction.
The Moving Average Convergence Divergence (MACD) indicator has also undergone a bearish crossover recently, with the MACD line dropping below the signal line. This is another bearish signal, indicating that PEPE might experience a further downtrend in the coming days.
Overall, Pepe Coin remains one of the most volatile crypto assets in the market, categorized as a high-yield speculative asset. The beginning of June seems to be a crucial period for PEPE as it tries to find a solid price support level. Investors should stay alert and closely monitor the market dynamics to make informed decisions.
