Price Analysis

Pepe Coin Faces Bearish Pressure as Major Sell-Off Sparks Concerns

Joy Nganga

The price of Pepe Coin has experienced a significant decline today, reaching $0.000012, corresponding to a decline of 3.94% within the last 24 hours. This meme coin is known for its volatility, as shown by an extensive trading volume that has exceeded $523 million as of now.

This came after an Ethereum whale deposited 118.5 billion PEPE coins into Kraken, which might be interpreted as profit-taking after holding the coins for seven months. The market has wondered if this could be it for PEPE this time.

Technical Analysis: Navigating the Peaks and Troughs

Today, Pepe Coin began on a bearish note, continuing its downward trend during a wider correction phase. The intraday chart reveals that highs reached $0.000018 before massive sell-offs, which signals strong levels of price rejection at higher prices. Traders, therefore, might take this to mean that they should book profits and realign their positions based on how the coin has been performing lately.

On the four-hour chart, the Relative Strength Index (RSI) is currently reading at 43.83, indicating some bear power taking hold of the market. A fall below the neutral 50 mark typically indicates growing bearish pressure, and PEPE's RSI levels suggest that sellers are currently in control, pushing the price down from earlier highs.

With the price movements, PEPE has had a significant trading volume, indicating that many people are still buying even though prices have fallen. In addition to a declining price, high volume figures normally indicate intense selling pressure. Additionally, on the four-hour chart for Moving Average Convergence Divergence (MACD), there is a bearish crossover since the MACD line fell below the signal line. This can be taken as a bearish signal, implying that PEPE might face more downward motions during a short period of time.

Whale Activities and Price  Influence

One notable Ethereum whale was spotted today, who transferred 118.5 billion PEPE coins to Kraken’s exchange. This move made profits of about $1.35 million from an investment worth approximately $1.48 million, possibly signaling a local top for Pepe Coin. Similar big transfers often cause market top speculations, and they could drive current bearishness.

Though there has been an intense sell-off, the presence of Pepe Coin in derivative markets has acted as a bit of a cushion. The high demand for PEPE in derivatives, one of the top meme currencies, makes it possible to maintain a liquidity basis that hinders sharp price falls. Nevertheless, long and short position holders in these markets have experienced liquidations due to the unstable nature of this coin’s trading system.

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