PEPE Price Crashes as Whales Dump, Technicals Signal Trouble: What Next?

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Following major announcements from the U.S. Federal Reserve and the Bank of Japan, the cryptocurrency market is undergoing a correction. Pepe (PEPE), the frog-themed meme coin on the Ethereum (ETH) network, has dropped around 8% in the past 24 hours. On Thursday morning in New York, it was trading at about $0.00001045.

What else is there to know about this meme coin? Dive in.

Pepe’s Market Performance

The mid-cap meme coin, with a fully diluted valuation of about $4.4 billion and a daily average traded volume of around $748 million, flashed a midterm bearish outlook after struggling to maintain bullish momentum.

Moreover, Pepe’s price closed the past two months with a bearish outlook, and based on historical data, the crypto industry could continue in a downward trend in August.

Whale Activity Raises Concerns

On-chain data from Lookonchain reveals that a major whale investor recently deposited 400 billion PEPE units—worth $4.22 million—into the Binance crypto exchange. The whale currently holds about 395 billion PEPE units, valued at approximately $4.1 million.

A whale deposited 400B $PEPE($4.22M) to #Binance to take profits in the past hour.

The whale withdrew 795.92B $PEPE($2.55M at the time) from #Binance on Mar 1 and currently has 395.93B $PEPE($4.18M) left.

His total profit on $PEPE is $5.85M, the ROI is 230%!… pic.twitter.com/o7T1ihjoq9

— Lookonchain (@lookonchain) August 1, 2024

This large transaction could create additional selling pressure for the 266,842 PEPE holders in the weeks ahead.

Technical Analysis

The Bitcoin fear and greed index has dropped from over 72%—indicating greed—to around 52%—reflecting a neutral stance—in the last two days. Technically, PEPE’s price is forming a head and shoulders (H&S) pattern, accompanied by a bearish divergence on the daily Relative Strength Index (RSI).

$PEPE has actually been holding up quite well through all this.

I would not be surprised if we see another leg up to take some untapped liquidity before the larger move down continues.

No plans to attempt a long- yet. For now just watching to see how things develop. https://t.co/aT9VFPLNKt pic.twitter.com/5U2MzPLTUW

— CrediBULL Crypto (@CredibleCrypto) August 1, 2024

If the bearish trend continues, Pepe’s price could find support in the range of $0.000009 to $0.000007, which aligns with the 0.5 and 0.618 weekly Fibonacci Retracement levels.

Also Read: Top 6 Altcoins Poised For Explosive Rally Before 2025

Will Pepe manage to hop out of this bearish trap, or is it headed for a deeper dive?

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