Pepe (PEPE), the popular third-largest crypto meme coin, is poised for a massive price decline after forming a bearish price action. This bearish outlook follows a significant price crash on January 7, 2024, and suggests further decline ahead.
Smart Whale Dumps 427 Billion PEPE Meme Coin
Amid this price decline, a blockchain-based transaction tracker, Lookonchain, made a post on X (formerly Twitter) stating that a smart whale dumped 427 billion PEPE meme coins worth $8.5 million onto the Kraken cryptocurrency exchange.
Despite dumping such a significant amount of meme coins, the whale still holds a substantial 1 trillion PEPE with a profit of $2 million.
This is not the first time the whale has dumped PEPE; in late December 2023, the whale dumped a large amount of the meme coin and made a profit of over $2 million. However, this time, the whale dump has the potential to create selling pressure and lead to further price decline due to the recent price action.
PEPE Technical Analysis and Upcoming Level
According to CoinPedia’s technical analysis, PEPE has formed a bearish head and shoulders price action pattern on the daily chart and is poised for a major breakdown. Currently, the price has taken support from the pattern’s neckline, but it appears that the support level is weakening.
Based on the recent price action, if PEPE breaches the pattern and closes a daily candle below the $0.0000166 level, it could drop by 20% to reach the $0.000013 level in the future.
On the positive side, PEPE’s Relative Strength Index (RSI) is close to the oversold area, indicating potential upside momentum. However, this seems unlikely due to the bearish market sentiment lasting across the market.
Decline Open Interest and Price Momentum
This price decline and bearish price action have raised concerns among investors, resulting in a decline in open positions, as revealed by the on-chain analytics firm Coinglass. At press time, PEPE’s open interest had dropped by 15%.
Currently, PEPE is trading near $0.0000178 and has witnessed a price decline of over 5.5% in the past 24 hours. During the same period, its trading volume increased by 10%, indicating heightened participation from investors and traders compared to the previous day.
