Whale Sell-off Sparks Price Analysis at $0.00001: What is Next for PEPE Coin?
During the Asian trading hours on Wednesday, there was a notable increase in selling pressure in the crypto market, causing Bitcoin to drop by almost 4%. This drop led to concerns about a potential continuation of the downtrend in major altcoins, including PEPE. The meme-themed cryptocurrency experienced an 8% decline today, furthering its correction with a channel setup. This raises the question of whether it is advisable to maintain investments in PEPE.
As it Stands
The current correction in Pepe coin began at the end of May when the price fell from $0.00001725. Since then, the cryptocurrency has been following a consistent downtrend, characterized by lower highs and lows, which align with two down sloping trendlines.
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This bearish trend has caused the asset to plummet by 39% to $0.00001048, with the market cap dropping to $4.42 billion. Analysis of the daily chart indicates the formation of a bull flag pattern along the falling trendline. This pattern typically prompts temporary counter-trend movements, allowing buyers to regain their momentum. Despite the correction, the PEPE price remains above the 50% Fibonacci retracement level, indicating a bullish long-term trend and the continued dominance of buyers in the asset.
Notable Whale Activity
However, PEPE is currently experiencing downward momentum, and a recent sell-off by smart money suggests a potential breakdown below $0.00001. Notably, a major whale, dimethyltryptamine.eth, has re-entered the PEPE market after a 10-month absence, selling 10 billion PEPE tokens (worth $112,000) for 32.73 ETH. This whale, who initially turned $45,000 into $26.7 million, currently holds 1.99 trillion PEPE tokens valued at $21.9 million, highlighting the profitability of early investments. However, the recent sell-off indicates that the large holder may not anticipate significant upside potential in PEPE in the near future.
Therefore, a breakout from the flag pattern resistance is required to end the current correction trend. If sustained buying occurs, the post-breakout rally has the potential to exceed $0.0000135 and challenge the $0.00001725 peak once again.
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