PEPE cryptocurrency faces a price crash as a major whale sells tokens and makes a profit of $68.3 million. User engagement is down and short selling is dominating. Pepe price seems to be caught in the current spiral.
The PEPE cryptocurrency has fallen by 8.62% in the past seven days. Memecoin PEPE is currently trading at $0.00002034 with a market capitalization of $8.03 billion.
Trading volume remains strong at $2.84 billion, reflecting ongoing interest despite the downturn. PEPE is among the most traded meme coins, but market sentiment appears cautious.
Whale movements shake PEPE Crypto
The recent sale of 130.2 billion tokens by a large PEPE whale has driven market trends. Prices dropped sharply due to this activity, which included a sale of 74.07 billion PEPE for $1.53 million. After the sale, this whale holds a massive 3.241 trillion PEPE worth $64.1 million.
With a return of 12.6 times the investment, the whale has made a realized profit of $68.3 million. This follows previous market price surges where whales took advantage of liquidity opportunities.
Profits show the strength of whales in the volatility of memecoins but also indicate that maintaining market presence remains strong.
Net flow tells us that 4 trillion PEPE has entered wallets and 765 billion PEPE has exited, hence there is a long-term commitment. The calculated moves of whales show a combination of profit-taking and holding affecting the market.
Technical analysis of PEPE coin price
The current price reflects the consolidation phase of PEPE as the token fluctuates around $0.000020356. The overall chart indicates a bullish breakout at $0.00004, a 68% increase from the current level. This forecast comes from the current consolidation zone, implying an increase in demand for the token.
Medium-term technical signals, including MACD, indicate a crossover implying a bullish breakout. Additionally, it highlights the Relative Strength Index at 50.29, indicating a neutral zone; therefore, there is a possibility of price increase in case of rising buying pressure.
However, the token price needs to close above the resistance zone to affirm the market control of the buyers.
If the breakout occurs, PEPE could attract more trading volume and attention from both large and small traders.
If the resistance level is not broken, we may witness consolidation or possibly a trend reversal.
PEPE user engagement declines as prices drop
Price drops lead to reduced PEPE user activity, as recent data shows. For active addresses, the decline is 25.55% and for new addresses, the decline is 27.01%. Over the past seven days, 33.86% of zero-balance addresses have also decreased.
Active addresses have a very close correlation with price increases, indicating there is a lot of interaction with the market around price surges.
This trend is confirmed by peaks in November 2024, corresponding with higher trading interest. However, recently, the price of PEPE has dropped sharply, and overall participation has significantly decreased.
Based on these metrics, it seems that market momentum has slowed down due to the decreasing number of users participating in the token. If prices remain unstable or reverse, this trend could indicate waning interest. This is normal for highly speculative assets like meme coins.
PEPE cryptocurrency traders shift positions to more short orders
As sentiment begins to shift, traders prefer short positions, as shown in the PEPE long/short ratio chart.
At any peak, selling pressure will dominate as selling volume increases compared to buying momentum. Traders are adjusting to capitalize on recent price volatility.
The ratio equation shows a sharp decline between optimistic and pessimistic sentiment in a very short period.
Data shows increased speculation as traders react to market volatility. Active participation in the highly volatile PEPE market is further confirmed with significant spikes and drops.
How people behave in the market shows that the market is reacting, where they only focus on short-term profits. Confidence has been diminished due to uncertainty and data shows an increase in short positions continues.
