3 reasons why buying Pepe coin price could drop 57%. Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Pepe coin price has recently faced significant headwinds. Despite occasional price rallies, the overall trend has been bearish. Large whale transactions and on-chain data signal potential trouble for PEPE.
The token’s recent price action, combined with increased whale activity and other bearish indicators, suggests that PEPE may encounter more challenging times ahead.
Whale Activity and CoinGlass Data
Whales have played a pivotal role in PEPE’s recent price movements. Massive withdrawals from exchanges indicate a lack of confidence among large holders.
Tweet about Pepe whale transactions.
Recently, a whale deposited nearly 47 billion PEPE (worth approximately $2.22 million) on Binance. Exchange deposits usually signal a selling mentality among traders, and with retail traders mimicking whale movements, such a transaction could potentially snowball into an all-out sell-off.
CoinGlass data provides further evidence of this bearish sentiment.
PEPE OI-Weighted Funding Rate. Source: Coinglass
The OI-weighted funding rate has recently dipped into negative territory, suggesting that short positions are outnumbering long positions. Traders are betting on a price decline, and this shift in market sentiment is concerning for PEPE holders.
Additionally, the declining open interest highlights a reduction in bullish momentum. As open interest decreases, it signals that fewer new positions are being established, which can exacerbate downward price movements.
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.
PEPE tokens age consumed spikes and increasing supply on exchanges. Source: Santiment
These movements often precede sell-offs by long-term holders, signaling a lack of confidence in PEPE’s future performance.
The supply of PEPE on exchanges has also increased. An increasing exchange supply typically results in increased selling pressure as more tokens are available for liquidation. The increased supply can drive prices down if the market cannot absorb the additional tokens.
Whale transaction counts and the declining supply held by top non-exchange addresses for PEPE.
Moreover, the accumulation of top non-exchange addresses has declined. The lack of accumulation by major holders suggests that large investors are not buying more PEPE, further undermining the token’s bullish prospects.
Finally, whale transaction counts for amounts greater than $100k and $1M have shown frequent and significant activity. Large whale transactions, especially when correlated with price drops, indicate heightened selling pressure from major holders.
Bearish Setup Another Headache For Pepe Coin Price
A bearish technical setup called the ‘descending triangle pattern‘ adds to the bearish cues against the memecoin. The token is currently testing the support trendline of the pattern, leaving bulls anxious about a breakout that confirms the pattern.
PEPEUSD pair formed a bearish setup with a 57% downside target. Source: Tradingview
Market analysts often consider the descending triangle a bearish continuation signal.
The configuration features a downward-sloping upper trendline, which gradually reduces the price action’s highs, and a flat lower trendline, which is a consistent support level the price finds difficult to break.
Moreover, the pattern suggests that selling pressure is intensifying, leading to successively weaker rallies. In this setup, the potential price target is typically gauged by the maximum height of the triangle at its widest point.
Hence, confirming the bearish setup might result in the Pepe coin price dropping over 57% to reach the projected price target near $0.00000375.
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