Since PEPE's listing on Coinbase, where its price reached an all-time high, it has increased by 105% over the past month but has dropped nearly 9% in the last seven days. Indicators like RSI and MVRV suggest that further corrections may occur as bullish momentum wanes. With the overall cryptocurrency market turning red, Pepe has experienced a strong decline.
Since reaching a peak of $0.00002567, the memecoin has dropped to a low of $0.000018. This downward trend has triggered panic selling, particularly among large holders.
PEPE has not yet reached oversold conditions.
PEPE RSI has fallen from 60 to 45.31 over the past three days, indicating a decrease in bullish momentum. The RSI, or Relative Strength Index, measures price momentum on a scale from 0 to 100, with values above 70 indicating overbought conditions and below 30 indicating oversold levels.
The decline reflects increasing selling pressure, but the current RSI indicates that PEPE has not yet reached oversold conditions.
PEPE's RSI is at 45.31, nearing a critical level, as it has not fallen below 30 since November 3rd. This suggests that if historical patterns hold, prices may stabilize soon. The recent decline has not changed the fact that PEPE is the third-largest meme token in the market, following DOGE and SHIB.
However, if the RSI falls further below 30, it could trigger stronger bearish momentum and lead to further price adjustments.
Pepe whale sold 25.465 billion tokens
Pepe whales have begun to sell off. In the past 24 hours, a whale deposited 25.465 billion tokens into Binance, worth $5.15 million.
Typically, when whales deposit funds into exchanges, it indicates they are preparing to sell. When whales start selling, it usually creates selling pressure that drives prices down.
Due to the sustained downtrend in the memecoin over the past week, whale sell-offs have increased.
During market downturns, whales tend to sell off to reduce losses or lock in profits. Such market activities typically precede price adjustments.
Does it have an impact on the price chart?
As expected, the increase in selling pressure, especially from large shareholders, typically leads to price declines. As anticipated, Pepe's trading price is $0.00001863, following a 7.80% drop in the daily chart, down 7.56%.
Although whale sell-offs can lead to price declines, Pepe is simultaneously experiencing a shift in market sentiment from bullish to bearish.
For example, Pepe's long-short differential shows that short positions dominate the market. Short positions account for 53%, indicating that most traders are bearish and expect prices to fall further.
PEPE/MVRV ratio suggests that adjustments may continue.
The 7-day MVRV ratio for PEPE is currently -6.2%, indicating that recent holders are experiencing slight unrealized losses on average. MVRV (Market Value to Realized Value ratio) measures holders' profits or losses based on the token's market value relative to the price paid by holders.
Such negative MVRV levels indicate reduced selling pressure as holders are less likely to sell at a loss.
Historically, when PEPE's 7-day MVRV falls below -9.7%, its price tends to rebound strongly, indicating potential for further corrections before another rise.
This pattern suggests that while current MVRV levels imply consolidation, a deeper decline may create conditions for a bullish rebound. If the MVRV trend declines, it could lay the groundwork for new accumulation and a price recovery.
Similarly, the total liquidations of long positions over the past week have also surged to a high of $4.97 million. While investors may be forced to exit positions, their lack of confidence in paying premium fees and holding these positions reflects their pessimistic outlook.
Finally, Pepe's MACD has shown a bearish crossover. This not only indicates a shift in market sentiment from bullish to bearish but also suggests an increase in downward momentum with sellers dominating the market.
In short, the sentiment around Pepe is strongly turning bearish. These conditions force whales to sell off to minimize losses or realize profits. Under strong bearish sentiment, the memecoin may decline further. If this is the case, Pepe will find support around $0.00001576.
But if market confidence recovers and the trend reverses, PEPE's price may challenge resistance levels of $0.0000228 and $0.000026, with a breakthrough at these levels potentially driving PEPE's price towards $0.000030, setting a new all-time high.
In simple terms, a Pepe whale has transferred 25.465 billion tokens to Binance, while Pepe has declined 7.8% in the past 24 hours due to persistent bearish sentiment.