Pepe (PEPE), the popular frog-themed memecoin, has faced a rough 24 hours, plunging over 11% to around $0.00001816. This drop comes amid a volatile period for the broader crypto market, with Bitcoin (BTC) slipping below its $97K-$99K support after briefly teasing $100K. Like many altcoins, PEPE has seen double-digit losses recently, leaving investors on edge.

Why Is PEPE Dropping?

Whales Are Cashing Out

One of the biggest reasons behind PEPE’s fall is heavy selling by whale investors. For example, a single whale holding 1 trillion PEPE tokens (worth $18 million) recently sent 427 billion tokens—around $8.45 million—to Kraken. This whale is estimated to have made $13.45 million in profits, adding significant pressure on the market as other investors followed suit.

More Sellers Than Buyers

According to on-chain data from Dexscreener, sellers dominated PEPE trading activity in the past day. Of the $3.3 million traded on decentralized platforms, about $2 million came from sell orders, further fueling the decline.

What’s Next for PEPE?

PEPE’s price has dipped below its 50-day moving average, signaling a bearish phase. Analysts predict the token could drop another 10-20% before finding stability and potentially rebounding toward a new all-time high.

Additionally, the daily Relative Strength Index (RSI) has fallen below 50%, showing sellers are firmly in control for now. Despite this, PEPE remains in a long-term bullish trend, and many believe it has the potential to recover once the market stabilizes.

Should You Buy PEPE Now?

If you’re considering PEPE, be cautious. The short-term outlook suggests further declines are possible, so it might be wise to wait for signs of stabilization before jumping in. Long-term prospects are still promising, but timing your investment could make a big difference.

Final Thoughts

While the recent selloff is concerning, it’s not unusual for volatile assets like PEPE to experience sharp ups and downs. As always, do your research and consider the risks before making any moves.

Stay tuned for the latest crypto updates to stay ahead in this fast-moving market!