Pepe Coin has shed some of its past gains, slipping off the coveted $0.000016 threshold. This downturn likely stemmed from massive sell pressure as whales dumped over $5 million worth of PEPE coins.
Given the bearish pressure, PEPE has declined over 5% of its gains in the last 24 hours and 14% in the past week, casting doubts about its future trajectory. So, what’s next for PEPE; will it recover or dip further?
Whale Moves 366 Million Tokens to Binance
On-chain analytics platform SpotOnChain reveals that a Pepe Coin whale transferred 366 million PEPE worth $5.31 million to Binance. This whale was likely cashing in on Pepe Coin’s recent surge. The report revealed that the whale realized an estimated profit of $4.84 million, a massive gain of 985%.
Notably, this whale used the same deposit address used by two other smart traders who profited from Coin.
Also, SpotOnChain spotted another whale address depositing 660.71 billion PEPE worth approximately $9.01 million. This deposit was made to Binance following PEPE’s 14% price drop at the end of May.
Next, the trader withdrew the PEPE tokens from MEXC and Binance at an estimated $4.57 million, realizing $4.44 million in profits. This profit represents 49.35% of the transactions.
These whale movements have sparked investors’ concerns about PEPE’s price trajectory. Moreover, the large volume of sell orders is likely one of the factors contributing to PEPE’s price decline today.
As of 5:42 AM EST, Pepe traded at $0.00001414, having declined 7.0% in the past 24 hours. This indicates that the sellers are in control of Pepe Coin’s price.
Meanwhile, PEPE’s recent price surge could be attributed to increased investor interest in meme coins, as many eagerly speculate the next possible price moves.
What Next for PEPE?
PEPE has formed four consecutive red candles with lower lows on the daily chart. On May 28, it encountered stiff resistance at the $0.00001542 resistance level. With aggressive sellers’ push, Pepe slipped off the $0.00001466 support and now plays within the $0.000014 threshold.
The red candles on the daily chart reflect the massive selloffs by whales as they moved to take profit from their positions. However, a support level at the $0.00001393 price level is critical to prevent further dips. Notwithstanding, PEPE is still trading below the trendline and might result in further decline.
Also, the general market sentiment for PEPE today is bearish, with the candles dropping towards the median band of the Donchian Channel (DC). A drop below this band will lead to a decline for Pepe Coin in the coming days.
The Relative Strength Index (RSI) is 57.92, in the neutral zone, approaching the oversold area. If the RSI drops below 50, PEPE will likely drop below the $0.00001393 support level in the coming days. However, if the support level holds, then a recovery rally for PEPE can begin.
