3 Reasons Why Pepe Coin Price Could Plummet by 57%
CoinChapter.com – Google News
NOIDA (CoinChapter.com) – Pepe coin price has been facing significant challenges lately, indicating a bearish trend. The involvement of large whales in transactions and on-chain data raises concerns about the future of PEPE.
Whale Activity and CoinGlass Data
The actions of whales have had a major impact on the price movements of PEPE. The withdrawal of massive amounts from exchanges suggests that large holders lack confidence in the token.
A recent example includes a whale depositing nearly 47 billion PEPE (equivalent to around $2.22 million) on Binance. Typically, exchange deposits indicate a selling mindset among traders. With retail traders following the lead of whales, such transactions could trigger a widespread sell-off.
Further evidence of this bearish sentiment can be found in CoinGlass data. The OI-weighted funding rate has dipped into negative territory, indicating that short positions outnumber long positions. Traders are anticipating a price decline, which is worrisome for PEPE holders. Additionally, the declining open interest suggests a decrease in bullish momentum. As fewer new positions are established, downward price movements can intensify.
Santiment Data Suggests Bearish Sentiment for Pepe Coin
Santiment’s on-chain metrics provide additional bearish signals for PEPE. The age-consumed metric has shown significant spikes, indicating large movements of older tokens. This often precedes sell-offs by long-term holders, indicating a lack of confidence in PEPE’s future performance.
Furthermore, there has been an increase in the supply of PEPE on exchanges. This typically leads to increased selling pressure as more tokens become available for liquidation. If the market cannot absorb the additional tokens, prices can decline.
Moreover, there has been a decline in the accumulation of PEPE by major holders outside of exchanges. This suggests that large investors are not buying more PEPE, further undermining the token’s bullish prospects. Additionally, frequent and significant whale transactions for amounts greater than $100k and $1M indicate heightened selling pressure from major holders, especially when correlated with price drops.
Bearish Setup Adds to Pepe Coin Price Woes
The presence of a bearish technical setup known as the “descending triangle pattern” adds to the bearish signals against the memecoin. Currently, the token is testing the support trendline of the pattern, causing concern for bullish investors.
Market analysts often see the descending triangle as a bearish continuation signal. It features a downward-sloping upper trendline, where the price action’s highs gradually decrease, and a flat lower trendline, which acts as a strong support level that is difficult to break. This pattern suggests that selling pressure is increasing, leading to weaker rallies. The potential price target is typically determined by the maximum height of the triangle at its widest point.
Therefore, if the bearish setup is confirmed, the Pepe coin price could plummet by over 57% to reach the projected price target near $0.00000375.
Overall, these factors indicate that Pepe coin price may face significant downward pressure in the near future.