Pepe [PEPE] has traded within a descending channel since it faced rejection at $0.00000688 two weeks ago.
Excerbitated by the recent market crash, the memecoin dropped to a low of $0.0000044. At the time of writing, PEPE traded at $0.000004541, down 5.56%, extending its week-long downtrend.
Whale dumps $3.88M worth of PEPE
With PEPE under intense bearish pressure, a long-term whale returned to the market and cashed out. After holding 1.7 trillion PEPE tokens since October, a whale offloaded 858 billion tokens worth $3.88 million.
This whale started accumulating PEPE in 2023 and has not made any sales. Even after this sale, the whale still holds 842 billion tokens, valued at $3.82 million, according to Arkham data.
Surprisingly, this whale activity was not an isolated case, as large holders’ outflows skyrocketed following the market dip.
According to Nansen data, Top Holders offloaded 4.25 trillion, as of writing, suggesting panic selling among the memecoins’ large holders.
When large holders offload during a downtrend, it signals a lack of market confidence and a fear of incurring further losses. Higher inflows have often increased market supply, further straining the market.
Additionally, the memecoin’s Sell Volume slighty dipped to 4.46 trillion on the 30th of January, down from 6.56 trillion the previous day. Over the same period, the memecoin recorded Buy Volume of 3.79 trillion and 5.72 trillion, respectively.
As a result, PEPE recorded a negative Buy-Sell Delta over the two days, a clear sign of aggressive spot selling. Therefore, recent whale activity poses additional downside risk to PEPE’s price charts, leading to more losses.
Is the memecoin on the verge of more losses?
As the market crashed, PEPE whales panicked and sold, further exacerbating the downside pressure. For that reason, PEPE’s Stochastic RSI made a bearish crossover and dropped to 13.5, at press time, further falling deeper into oversold territory.
Likewise, PEPE was trading below its short- and long-term Moving Averages, 20.50, 100, and 200 EMAs, reflecting sustained bearish pressure.
As these momentum indicators continued to slip, they suggested intense downward momentum and a high likelihood of its persistence.
Therefore, if sellers, especially whales, continue to dominate the market, PEPE is likely to incur further losses and decline to $0.0000043.
For a bullish reversal, PEPE needs a daily close above $0.0000051, with EMA 20 at $0.0000051 as the immediate resistance level.
Final Thoughts
- Pepe dropped to a low of $0.0000044, then rebounded slightly to $0.0000045 following the market crash.
- A PEPE whale offloaded 858 billion tokens worth $3.88 million.
