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Is a $0.00001 crash imminent as a result of the whale sell-off?

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Pepe Coin Price Analysis: On Wednesday, the crypto market witnessed a spike in selling pressure during the Asian trading hours as Bitcoin price fell by almost 4%. BTC’s fresh surge to $60,000 triggered the possibility of a downtrend continuation in most major altcoins, including PEPE. The frog-themed memecoin is down 8% today, continuing the corrective decline with a channel buildup. Should you stay invested?

Also Read: PEPE Price: Whale Dumps 1.2 Trillion Coins Amid Monthly Crash. Is Price Preparing for a Rally?

Pepe Coin Price Analysis: Whale Dumps $112,000 Worth of Token Amid Downtrend

Pepe Coin Price Analysis | Tradingview

The current corrective trend in Pepe Coin began in late May when the price declined from $0.00001725. Since then, the meme coin has experienced a steady downtrend with lower highs and lower lows that resonates with two sloping trend lines.

The bearish reversal has seen the asset fall by 39% to $0.00001048, while the market cap has plummeted to $4.42 billion. An analysis of the daily chart shows that the falling trend line indicates the formation of a bull flag pattern. This chart pattern is known to trigger temporary counter-trend moves to allow buyers to regain their strength.

Despite the correction, PEPE price is still above the 50% Fibonacci retracement tool, indicating that the long-term trend remains bullish and buyers continue to be a dominant force in this asset.

However, PEPE is currently in a downward momentum and a recent sell-off by smart money suggests a breakdown below $0.00001. A large whale, dimethyltryptamine.eth, has re-engaged with PEPE after a 10-month hiatus, selling 10 billion PEPE tokens (worth $112,000) for 32.73 ETH.

Also read: Binance announces delisting of major crypto pairs, brace for market impact

This whale’s early investment turned $45,000 into $26.7 million, a gain of 58.6%. The whale currently holds 1.99 trillion PEPE tokens worth $21.9 million, and his activity highlights the profitability of early investments. However, the recent sell-off suggests that the major holder may not expect a strong uptrend in PEPE in the near future.

Therefore, a breakout from the flag pattern resistance is necessary to end the current corrective trend. If buying behavior continues, the recovery after the breakout could exceed the $0.0000135 level and revisit the high of $0.00001725.

Technical indicator

  • BB indicator: The downward trend in the lower Bollinger band underlines the aggressive selling and shows no signs of a trend reversal yet.
  • ADX: A 20% increase in the daily Average Directional Index indicates that sellers are gaining momentum, which could lead to a more prolonged downturn.

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Frequently Asked Questions (FAQs)

A bull flag pattern is a technical chart pattern that resembles a small rectangular consolidation of price action within a prevailing uptrend. It indicates a temporary pause before the uptrend continues.

The 50% Fibonacci retracement tool is a technical analysis tool used to identify potential support and resistance levels by measuring half of a previous price movement.

The ADX (Average Directional Index) indicator measures the strength of a trend, with higher values ​​indicating a stronger trend.

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