3 Reasons Why Pepe Coin Price Could Experience a 57% Drop
Pepe coin has been facing significant challenges recently, leading to a bearish trend in its price. The involvement of large whales in transactions and the analysis of on-chain data point towards potential trouble for PEPE.
Whale activity and data from CoinGlass indicate the lack of confidence among large holders. Massive withdrawals from exchanges suggest a selling mentality, and when retail traders imitate these movements, it could trigger a widespread sell-off. CoinGlass data also shows a negative OI-weighted funding rate, signifying that short positions are outweighing long positions. This shift in market sentiment is concerning for PEPE holders, especially with the declining open interest, indicating a reduction in bullish momentum.
Santiment’s on-chain metrics further support the bearish sentiment for Pepe coin. The age-consumed metric shows significant spikes, indicating movements of older tokens. This often precedes sell-offs by long-term holders, signaling a lack of confidence in PEPE’s future performance. Additionally, the increased supply of PEPE on exchanges adds to the selling pressure, potentially driving prices down. The lack of accumulation by major holders also suggests a lack of interest in buying more PEPE, undermining the token’s bullish prospects. Frequent and significant whale transactions, correlated with price drops, indicate heightened selling pressure from major holders.
Furthermore, a bearish technical setup called the “descending triangle pattern” adds to the bearish cues against Pepe coin. The token is currently testing the support trendline of the pattern, causing concern among bulls about a potential breakout that confirms the pattern. Market analysts consider the descending triangle a bearish continuation signal, with a downward-sloping upper trendline and a flat lower trendline representing a strong support level. This setup suggests that selling pressure is intensifying, leading to weaker rallies. If the bearish setup is confirmed, Pepe coin price could drop by over 57% to reach the projected price target near $0.00000375.
In conclusion, the combination of whale activity, on-chain data analysis, and the bearish technical setup suggests that Pepe coin price could experience a significant drop of 57%. PEPE holders should closely monitor these indicators to make informed investment decisions.