After reaching a peak of $0.00025, Pepe [PEPE] has shown signs of a bearish trend with the formation of a flagpole and a bearish pennant, indicating a potential continuation of the downtrend.
The token has dropped from $0.000025 to a low of $0.0000173, reflecting a significant downward momentum in recent trading sessions.
Currently, Pepe is being traded at $0.00001963, marking a 6.5% increase in the last 24 hours. Moreover, the token has experienced a notable surge of 105.02% over the past month.
Despite this recent uptick, Pepe remains approximately 23.24% lower than its all-time high recorded just two weeks ago.
As Pepe’s value continues to decline, it has presented buying opportunities for both large holders and retail traders. Additionally, some significant holders have opted to stock up on tokens rather than selling at a loss.
Whale Moves 150 Billion Tokens
According to On-chain tracker Lookonchain, a whale engaging in hoarding activities has withdrawn 150 billion Pepe tokens from the Binance exchange.
These tokens amount to $2.94 million based on current prices. The withdrawal of tokens from exchanges usually indicates a long-term holding strategy rather than short-term selling.
This move suggests that the whale is gearing up to hold onto the tokens until they become profitable.
Pepe’s Market Indicators
While whale movements typically signal positivity, other market indicators paint a different picture.
Pepe’s Chaikin Money Flow (CMF) has shown a decline recently, entering negative territory over the past week. This sustained drop indicates a shift towards seller dominance and weakening buyer momentum.
Further evidence includes a surge in ADX to 38 and a decline in +DI to 23 over the same period, signifying strengthening downward momentum and exhaustion of the uptrend.
Investor sentiment appears bearish as indicated by Coinglass’s Long/Short Ratio, which shows the dominance of short positions in the market, implying an expectation of price declines.
Moreover, Pepe’s NVT Ratio has spiked from 9.6 to 61.93, suggesting overvaluation and speculation as the driving forces behind the recent price surge.
Despite gains in daily trading, the prevailing bearish sentiment may lead to further declines in Pepe’s price. A potential support level can be expected around $0.00001720. However, continued transfers of tokens to private wallets by whales could push Pepe to reclaim the $0.00002 resistance level.