Pepe Coin price rises 15% in 4 days, but a whale sell-off and bearish pattern hint at a possible 53% drop to key support.
Pepe Coin’s (PEPE) price has increased by 15% over the past four days, rising from a low of $0.00001040 to $0.00001200.
As of June 9, the price is currently trading at $0.00001200.
The frog-based meme token is at risk of a correction due to the bearish pattern of technical indicators and the sale of billionaires’ holdings.
Whales Dump 1 Trillion Pepe Coin Tokens, Endangering Pepe Coin Price
It is possible that a single hoarder sold 1 trillion PEPE tokens after transferring them to Binance.
An address transferred $11.65 million worth of meme coins to Binance, as noted by The Data Nerd, an on-chain analyst.
The Data Nerd observes that the whale would incur a loss of $867K if they sold their holdings, even though it is uncertain whether they did so.
As indicated by Sentiment data, Pepe Coin has been sold by other billionaires.
The Supply Held By Whales metric suggests that the holdings of this cohort have decreased from a year-to-date high of 165 trillion tokens to 134.98 trillion tokens, reaching the levels of November 16.
This development is bearish and implies that these investors are not optimistic about the future price action of Pepe Coin to retain the tokens.
The token has also been dumped by wise money investors, as indicated by the Nansen numbers.
They currently possess 247 billion tokens, a decrease from the 259 trillion they possessed on May 21.
Nansen characterizes these investors as those with a proven track record of success and experience.
The Network Realized Profit/Loss indicator also presents a pessimistic outlook.
This metric indicates that investors sold their holdings for a loss of -3.83 million.
When the price undergoes significant corrections in brief periods, this is a sign of capitulation.
What implications does technical analysis have for the token in light of the pessimistic investor signals indicated by blockchain data?
A potential rebound surpassing the downtrend or a collapse exacerbated by the whale selling spree?
PEPE Technical Analysis Suggests 50% Chance Of Crash
The Pepe coin price decreased from $0.00001632 last month to $0.00001200, as indicated by the three-day chart.
This decline occurred concurrently with the most recent decline in the cryptocurrency market.
Although Pepe has experienced a rise in the past four days, there is a danger that it has established a multi-year head-and-shoulders pattern, which is a typical bearish reversal setup.
In this instance, the head of this technical formation is at its all-time high of $0.00002838.
It also has a neckline currently at $0.000005716, its lowest level since March of this year and between August and April last year.
The two shoulders are approximately $0.00001632.
A breach will be confirmed if the Pepe Coin price achieves a decisive three-day candlestick close below the neckline.
The design anticipates a 53% decline to $0.000001011 in this scenario.
The head’s height is added to achieve this theoretical target from the neckline to the escape point.
Even though the on-chain data and technicals suggest an adverse outlook for the Pepe Coin price, the head-and-shoulder pattern will be threatened if it converts the $0.00001632 resistance into a support floor.
A conclusive three-day candlestick close above this level could propel the PEPE token by 30% to $0.000002170.
