3 Reasons Why Pepe Coin Price Could Experience a 57% Drop
Pepe coin has been facing significant challenges in recent times, with the overall trend being bearish. The involvement of large whales in transactions and on-chain data are indicating potential trouble for PEPE.
Whale activity and CoinGlass data are playing a crucial role in influencing PEPE’s price movements. The massive withdrawals from exchanges suggest a lack of confidence among large holders. Recently, a whale deposited nearly 47 billion PEPE on Binance, signaling a selling mentality among traders. This transaction could potentially trigger a sell-off as retail traders mimic whale movements. CoinGlass data further supports this bearish sentiment, with the OI-weighted funding rate dipping into negative territory. This suggests that short positions outnumber long positions, indicating a bet on a price decline. The declining open interest also highlights a reduction in bullish momentum, exacerbating downward price movements.
Santiment’s on-chain metrics provide additional evidence of bearish sentiment for PEPE. The age-consumed metric has shown significant spikes, indicating large 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 supply of PEPE on exchanges has increased, resulting in increased selling pressure. If the market cannot absorb the additional tokens, it can drive prices down. The lack of accumulation by major holders further undermines the token’s bullish prospects. Whale transaction counts for large amounts have also shown frequent and significant activity, indicating heightened selling pressure.
Another bearish cue for Pepe coin price is the descending triangle pattern. This setup adds to the bearish outlook for the memecoin. The token is currently testing the support trendline of the pattern, leaving bulls anxious about a breakout that confirms the pattern. The descending triangle is considered a bearish continuation signal, with a downward-sloping upper trendline and a flat lower trendline. This suggests that selling pressure is increasing, leading to weaker rallies. If the bearish setup is confirmed, the Pepe coin price could potentially drop over 57% to reach the projected price target near $0.00000375.
In conclusion, there are several factors indicating potential trouble for Pepe coin price. The involvement of large whales, bearish on-chain data, and the bearish technical setup all contribute to the possibility of a 57% drop in price.